Analysts at Berenberg Bank provided their views on ThredUp Inc. (NASDAQ:TDUP) following the company’s Q4 results reported on March 7.

The analysts believe underwhelming progress on margins coupled with in-line 2022 revenue guidance has not been enough to pique investor interest since the earning release.

Given its technology angle, year-to-date underperformance in tech stocks also hasn’t helped the stock, as investors appear to be rotating out of unproven consumer-tech names.

While the analysts expect the company to leverage proprietary technology to participate in a structurally growing resale market, their optimism is offset to some degree by concerns around potential take rate pressures impacting its path to profitability. The analysts lowered their price target to $8 from $21, while maintaining their hold rating.