Reebonz (RBZ) Stock Can Reach $11, Says Analyst
Reebonz (RBZ) shareholders have had a rough 2019, as Mr. Market chopped off more than 70% of the company’s stock price. One analyst, however, thinks this new, lower stock price could offer new investors an opportunity to get into RBZ on the cheap.
This morning, Maxim analyst Allen Klee initiated coverage on RBZ stock with a ‘buy’ rating and $11 price target, which implies nearly 160% upside from current levels. (To watch Klee’s track record, click here)
Klee believes the stock can reach $11 as the luxury e-commerce industry (particularly in Asia Pacific) should garner a premium treatment by consumers and RBZ will benefit from the growth of its Marketplace business.
Klee wrote, “Reebonz participates in the $70 billion Asia Pacific luxury e-commerce market that is only 7% penetrated, and is expected to grow with an increasing middle and upper class in the region. Reebonz offers the most comprehensive variety of merchandise from top brands, along with a Marketplace where individuals can sell their pre-owned items. The company generates high lifetime revenue and profits on marketing spend dollars, which should now increase with a recent $10M capital raise. The company has a proprietary database on pricing that provides a competitive advantage in pricing items. As a result, the company can provide consumers a guaranteed, near instantaneous price on products placed on its sites and offer credits for new purchases. The company is able to generate gross margins above industry average given a focus on the luxury goods segment. A focus on omnichannel sales approach, targeted marketing, technology, localization, authentication and customer loyalty programs creates an attractive customer experience and repeat customers.”
Aside from this bullish rating, RBZ has only received one other analyst rating in the last 12 months. Five-star Roth capital analyst Darren Aftahi also has a ‘buy’ rating on RBZ with a relatively bullish $11 price target- suggesting he is aligned with Klee’s current take on this stock. (See RBZ’s price targets and analyst ratings on TipRanks)