Goldman Sachs has revised its outlook on Torrid (CURV, Financial), lowering its rating from Neutral to Sell. The updated price target is now $4, reduced from the previous $5.50. Despite acknowledging the strategic measures that Torrid's management is implementing to rejuvenate its operations, Goldman Sachs expresses concern about the company's vulnerability to the decelerating growth in the U.S. economy.
The assessment highlights that Torrid's primary consumer base is likely to feel the impact more acutely, as these consumers are shifting their spending focus away from personal purchases. The firm notes that year-to-date trends indicate a reduction in net purchase intent for Torrid's products. This reflects the core customers' heightened exposure to broader economic uncertainties.
