We are reiterating our Buy rating and $30 price target and slightly tweaking our 2026 and 2027 revenue and EBITDA projections after a.k.a. Brands reported a solid 1Q26 (March) which, even adjusted for material tariff and inventory shifts, was at or above expectations. With the company now shifting to materially tariff (and supply chain) impacted quarterly comparisons, we believe a.k.a. Brands will be able to drive top line and EBITDA growth, setting the stage for further expansion potential in 2027 and beyond. Further, we believe management is positioning the company to return to registering material operating leverage as store growth and wholesale expansion begin to drive higher overall margins. As such, we look for material progress at the company in 2Q26 and beyond and reiterate our Buy rating and $30 price target for AKA.
