Goldman Sachs has revised its price target for Savers Value Village (SVV, Financial), bringing it down from $10 to $9. Despite this adjustment, the investment bank maintains a Neutral rating on the retailer’s shares. This change is part of a broader move to adopt a more conservative stance on the U.S. apparel and softlines sector due to emerging economic challenges.
In addition to sector-specific adjustments, Goldman Sachs has revised its outlook for U.S. GDP growth. The firm now anticipates a growth rate of 0.5% in 2025, a significant reduction from the 2.5% forecasted for 2024, measured on a fourth-quarter-to-fourth-quarter basis. Moreover, the probability of a recession occurring in the near future is now estimated at 45%.
While Goldman Sachs has not fully factored in a recessionary scenario, the firm highlights several risks that could impact earnings. These include recent market volatility, increasing geopolitical tensions, and elevated tariff rates, all of which contribute to a less optimistic outlook for the economic environment.
