Top Analyst Bullish As Reebonz (RBZ) Expands Internationally
Reebonz (RBZ) is aggressively seeking international growth. The luxury e-commerce firm announced last week that its ‘Sell to Reebonz’ offering is being added to five international markets, with websites that use the local language and currencies.
As an online platform for authenticated luxury goods in Asia, the company has an especially interesting value proposition. Its ‘Sell to Reebonz’ program was introduced in May to make selling on the platform easier. Instead of selling directly to consumers, people can now sell to Reebonz directly. It reduces the drawn-out period of price negotiation and allows sellers to seamlessly receive compensation in the form of spending credits from a company they can trust. Reebonz can then take the product that is purchased and sell it to other users on its platform. The new markets Reebonz is entering with this program are Malaysia, Indonesia, Hong Kong, Taiwan, and Australia.
In conjunction with the expansion announcement, Roth Capital analyst Darren Aftahi reiterates a Buy rating on RBZ stock, with a price target of $11.00, which implies nearly nearly 230% upside from current levels. (To watch Aftahi’s track record, click here).
The analyst’s bull thesis centers around the effectiveness of the Reebonz marketplace in driving “future purchases, user retention and repeat buying/selling.” In addition, Reebonz has proven that it is flexible in adding features to their platform. Even if users want to sell an item that isn’t in Reebonz’s ~34k catalog, they can upload a picture of the item via WhatsApp and it can be authenticated and quoted for exchange credits by Reebonz. This allows for the quick sale of items that are included in the massive catalog Reebonz has, and the option to sell items to Reebonz that are outside of the catalog. Reebonz is clearly trying to become an all-encompassing platform for luxury goods, and the nature of luxury indicates that there will be a distinct platform for luxury goods that is clearly separate from major e-commerce retailers such as Alibaba or Amazon.
The credit-based system is a key part of why Aftahi is so bullish on the ‘Sell to Reebonz’ offering. Rather than providing users with cash, which they could spend outside of the Reebonz platform, Reebonz’s user credits ensures that the money will be plowed back into their own service.
All in all, Aftahi is very bullish on Reebonz’s opportunity to revolutionize online luxury. TipRanks analysis of two analyst ratings on RBZ in the last three months shows that both analysts have the stock rated as a Buy with price targets of $11. The $11 price target represents a 212% upside from the current share price (Click here to see RBZ’s price targets on TipRanks).