Research Coverage on Small and Micro-Cap Companies, Zacks Small Cap Research

Zacks Small Cap Research

Research Coverage on Small and Micro-Cap Companies

Zacks Small Cap Research provides research coverage on small- and micro-cap companies that are “under-followed” or “under-valued” by Wall Street. We produce high quality equity research for the institutional and retail investor on microcap firms we believe are well positioned for future growth. The Zacks SCR analyst team has an average of 20 years of experience in investment research. We conduct significant due diligence in an effort to maintain the highest quality small-cap universe.

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<ul><li>Key 2Q24 takeaways include: 1) revenues likely to step function higher in the near term (4Q24 launch of Apple's iPhone 16) and beyond reflecting building recycling volumes and rising demand for pre-owned products, particularly in light of ongoing government support 2) management remains focused on increasingly tapping into recycling activity beyond consumer electronics (luxury goods, gold, jewelry, premium liquor), as well as further expanding the company's store footprint and upgrading existing locations to better showcase multi-category products and 3) we look for further margin expansion looking out to 2H24 and 2025 given a more favorable product/distribution mix.</li><li> From a stock perspective, we see further upside for RERE, as awareness and appreciation of the company's business model, growth prospects, competitive positioning, and valuation disconnect increasingly take hold.</li></ul>

Key 2Q24 takeaways include: 1) revenues likely to step function higher in the near term (4Q24 launch of Apple's iPhone 16) and beyond reflecting building recycling volumes and rising demand for pre-owned products, particularly in light of ongoing government support 2) management remains focused on increasingly tapping into recycling activity beyond consumer electronics (luxury goods, gold, jewelry, premium liquor), as well as further expanding the company's store footprint and upgrading existing locations to better showcase multi-category products and 3) we look for further margin expansion looking out to 2H24 and 2025 given a more favorable product/distribution mix. From a stock perspective, we see further upside for RERE, as awareness and appreciation of the company's business model, growth prospects, competitive positioning, and valuation disconnect increasingly take hold.

2Q24 Earnings: Adjusted Operating Income Beat on Higher Revenues  Growth Outlook Remains Bright

<ul><li>Despite a slightly flatter revenue/margin trajectory outlook, we remain optimistic that ATRenew's differentiated pre-owned consumer electronics transactions and services platform in China will continue to drive outsized growth in transaction volumes, sales, fees, and profits over the long run.</li><li> While RERE has meaningfully outperformed recently, we believe current levels for the stock still provide investors with an attractive entry point, as awareness and appreciation of the company's business model, growth prospects, competitive positioning, and valuation disconnect increasingly take hold.</li><li> Despite what we believe to be conservative inputs/assumptions, our DCF model suggests a wide disconnect between ATRenew's fundamentals and the stock's current price.</li></ul>

Despite a slightly flatter revenue/margin trajectory outlook, we remain optimistic that ATRenew's differentiated pre-owned consumer electronics transactions and services platform in China will continue to drive outsized growth in transaction volumes, sales, fees, and profits over the long run. While RERE has meaningfully outperformed recently, we believe current levels for the stock still provide investors with an attractive entry point, as awareness and appreciation of the company's business model, growth prospects, competitive positioning, and valuation disconnect increasingly take hold. Despite what we believe to be conservative inputs/assumptions, our DCF model suggests a wide disconnect between ATRenew's fundamentals and the stock's current price.

RERE: Trimming 2024 EPS Estimate Ahead of 1Q24 Earnings

China

ATRenew Inc. owns and operates pre-owned consumer electronics transactions and services platform. The Company develops technology-driven pre-owned consumer electronics transactions and services platform. ATRenew serves customers worldwide.

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ATRenew (RERE US)

2Q24 Earnings: Adjusted Operating Income Beat on Higher Revenues Growth Outlook Remains Bright

Key 2Q24 takeaways include: 1) revenues likely to step function higher in the near term (4Q24 launch of Apple's iPhone 16) and beyond reflecting...

Zacks Small Cap Research

RERE: Trimming 2024 EPS Estimate Ahead of 1Q24 Earnings

Despite a slightly flatter revenue/margin trajectory outlook, we remain optimistic that ATRenew's differentiated pre-owned consumer electronics...

Zacks Small Cap Research

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