An analyst at Alliance Global Partners, Brian Kinstlinger, has adjusted his outlook on Aterian (ATER, Financial), moving it from a Buy to a Neutral rating. This shift comes without a specific price target, reflecting uncertainties surrounding the company's supply chain strategies.
The decision is primarily driven by the fact that 75% of Aterian's products are sourced from China. The company's reliance on Chinese imports raises concerns about potential cost increases due to tariffs, which are expected to challenge their pricing strategy. Although Aterian's management is contemplating price hikes, transferring the entirety of the increased costs to consumers may adversely affect demand.
Alliance Global Partners is currently awaiting further details on Aterian's plans for diversifying its supply chain and the extent to which it will implement price adjustments. These factors will be critical in assessing the company's ability to navigate the complexities of international trade and pricing pressures.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Aterian Inc (ATER, Financial) is $6.00 with a high estimate of $8.00 and a low estimate of $4.00. The average target implies an upside of 248.84% from the current price of $1.72. More detailed estimate data can be found on the Aterian Inc (ATER) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Aterian Inc's (ATER, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Aterian Inc (ATER, Financial) in one year is $2.58, suggesting a upside of 50% from the current price of $1.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Aterian Inc (ATER) Summary page.
