Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

aka Brands Holding Corp / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, $30 price target for a.k.a. Brands, but lowering our 2025 projections with the company announcing 1Q25 (March) results after the close on Tuesday.</li><li>With AKA continuing to trade near its 52-week lows, we believe investors are overwhelmingly focused on the company's China exposure and missing the continued strong product demand, store expansion and a.k.a. Brands ability to shift goods quickly away from China.</li><li>Further, the international operations (over 30% of total sales in 2024) could also switch to a plus, with growth still in the forecast and lower inventories allowing for higher returns.</li></ul>

We are reiterating our Buy rating, $30 price target for a.k.a. Brands, but lowering our 2025 projections with the company announcing 1Q25 (March) results after the close on Tuesday.With AKA continuing to trade near its 52-week lows, we believe investors are overwhelmingly focused on the company's China exposure and missing the continued strong product demand, store expansion and a.k.a. Brands ability to shift goods quickly away from China.Further, the international operations (over 30% of total sales in 2024) could also switch to a plus, with growth still in the forecast and lower inventories allowing for higher returns.

AKA: 1Q Preview: China Overhang Overdone? Reiterate Buy, $30 PT