We are initiating coverage of a.k.a. Brands Holding Corp. ("a.k.a. Brands" or the "company"), a leading owner of primarily online apparel-based brands focused on Generation Z and Millennial consumers, with a Buy rating and $14.00 price target, or 10.9X our 2025 EBITDA projection of $20.2 million. The company's brands include: 1) Princess Polly, focusing on 15 to 25 year-old women; 2) Petal & Pup, which offers feminine styles for 25 to 34 year-old women; 3) Culture Kings, a street wear destination; and 4) mnml, a high-quality street wear designer focused on bottoms. After two years of material declines, due primarily to economic slowdowns in Australia, we believe in 2H24, driven by a rising domestic channel, the launch of Princess Polly stores, emerging digital marketplace and wholesale relationships, and a reorganization at Culture Kings, a.k.a Brands is poised to register strong top line and Adjusted EBITDA growth.
