We are reiterating our Buy rating and projections, but raising our price target for AKA to $30 (from $25) with the company announcing 3Q24 (September) results after the close on Thursday. We believe, with at least six Princess Polly stores opened for the Holidays (and more on the way) a.k.a. Brands is well on their way to creating a true omnichannel brand with highly appealing returns and a path to driving overall profitability for the company. Further, we believe Culture Kings, with the shift to the company's "test and repeat" inventory model, is setting up to return to profitable growth. When combined with Petal & Pup adding further digital marketplace partners and mnml continuing to expand the offerings and wholesale reach, we believe a.k.a. management will be highly upbeat for both current and future upside prospects and, as such, we are raising our AKA price target to $30 (from $25) and reiterating our Buy rating.
