We are reiterating our Buy rating, $25 price target and projections for a.k.a. Brands with the company announcing 2Q24 (June) results after the close on Wednesday. While 2Q is not a highly crucial period for the company, we believe management will be able to point to material progress on multiple fronts, from continued solid top line growth at Princess Polly, Culture Kings setting up for the shift to the "test and repeat" model and adding more exclusives to the mix, and Petal & Pup leveraging strong demand for dresses and new digital marketplace relationships. Further, we believe a.k.a. Brands is on track to open three new Princess Polly stores in 3Q24, with more on track for 2025. As such, we believe the company will reiterate overall guidance for 2024 with the potential for further upside. As such, with key catalysts (New Princess Polly stores, Culture Kings operating shift) on track to provide 2H24 (and beyond) upside, we reiterate our Buy rating and $25 price target for AKA.
