MYT Netherlands Parent B.V. (NYSE:MYTE): Analysts Maintain 'Buy' Rating with a Potential 41.44% Upside

Despite a recent setback in MYT Netherlands Parent B.V.'s (NYSE:MYTE) quarterly earnings report, where the company missed analyst expectations, brokerage firm UBS Group maintains its "buy" rating on MYT's stock. The price objective was reduced from $14.00 to $10.00. However, UBS believes there is still room for potential upside, a remarkable 41.44% based on the new price objective. Analysts forecast an estimated earnings per share of 0.43 for the full year 2023, which warrants close monitoring of MYT's performance.

MYT has been the subject of various analyst recommendations. JPMorgan Chase & Co. cut their target price from $11.00 to $9.00, while TD Cowen lowered their rating from "outperform" to "market perform" and decreased their price objective from $13.00 to $7.00. Morgan Stanley also reduced their price objective from $10.00 to $9.00 and set an "equal weight" rating on the stock. Bloomberg.com's consensus rating for MYTE is a 'Moderate Buy' based on six overall ratings: two for 'hold' and four for 'buy.' The average target price estimates sit at $12.63, which is still reasonable compared to the stock's current value.

On April 9, 2023, MYTE shares traded up by seven cents at a rate of $7.07. The trading volume was 111,822 shares compared to its average volume of around 124,553 shares. The company has a fifty-day moving average of $8.37 and a two hundred-day average of $9.80. MYT's market cap stands at $600.10 million, with a debt-to-equity ratio of 0.09, a current ratio of 2.71, and a quick ratio of 0.66.

In recent years, MYT Netherlands Parent B.V. has experienced revenue growth. Last year, the company's revenues grew by 5.6%, with a 58% aggregate growth over three years. Analysts covering the company expect revenues to grow by 15% per annum over the next three years, outpacing the broader industry's forecasted growth of 6.9% per year. The company's P/S ratio is consistent with its industry peers, suggesting that investors may be uncertain about MYT's ability to meet future growth expectations.

Fintel reports that UBS maintained its Buy recommendation for MYT Netherlands on April 6, 2023. The average one-year price target for MYT Netherlands is $13.84, representing a 95.78% increase from its reported closing price of $7.07. The projected annual revenue for MYT Netherlands is $805 million, a 13.26% increase, while the projected annual non-GAAP EPS is $0.53. JPMorgan Chase & Co. increased its portfolio allocation in MYTE by 96.77% over the last quarter, holding 63K shares representing 0.07% ownership of the company.

Over the past year, MYT Netherlands Parent B.V. shareholders have experienced a 44% decrease in share price, underperforming the market decline of 11%. The share price has continued to decline over the last 90 days, down 21%. Given the stock's relatively short history and recent underperformance, investors should exercise caution until stronger business performance is demonstrated.