Goldman Small Cap Research Publishes New Research Report on Digital Brands Group, Inc.

Rhea-AI Summary

Goldman Small Cap Research has published a new research report on Digital Brands Group, Inc. (NASDAQ:DBGI), highlighting its potential for growth and value appreciation. DBGI reported a 44% sales increase from 2020 to 2021, with projections of $52M sales in 2022 and $87M in 2023. The company's unique business model and M&A strategy are expected to enhance margins and market share. The report assigns a price target reflective of its growth potential, despite a low current price/sales ratio of 0.5x compared to the peer average of 2.7x.

Positive

• Sales increased by 44% from 2020 to 2021.
• Forecasted sales: $52M in 2022 and $87M in 2023.
• M&A strategy expected to drive sales and enhance margins.
• Price target reflects a premium to peer average P/S ratio due to higher growth potential.

Negative

• None.

BALTIMORE, MD / ACCESSWIRE / April 1, 2022 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research report on Digital Brands Group, Inc. (NASDAQ:DBGI), a curated collection of luxury lifestyle, digital-first brands across complementary categories. The report carries a price target. To view the new research report, along with disclosures and disclaimers, or to download it in its entirety, please visit https://bit.ly/38jXnWJ.

Digital Brands Group, Inc. is a curated collection of luxury lifestyle, digital-first brands across complementary categories. The Company offers a wide variety of popular apparel through numerous brands on a both direct-to-consumer and wholesale basis. The Company has created a business model derived from its founding as a digitally native-first vertical brand. Thus, DBGI controls its own distribution, sourcing products directly from third-party manufacturers and selling directly to the end consumer. The Company's novel M&A and operational strategy has fostered meaningful growth and emerging market share across multiple categories.

In the Opportunity Research report, analyst Rob Goldman reviews DBGI's model, financials, and key upcoming milestones, which could begin to occur in 2Q22.

Enviable Growth for Undervalued Player

Goldman commented, "Fast-growing, yet undervalued digital-first apparel firm Digital Brands Group, Inc. appears poised to enjoy a meaningful increase in share price and market value. Sales rose by 44% from 2020 to 2021, with even greater gains forecasted ahead, but the stock is assigned a paltry 0.5x price/sales ratio on FY22E projected sales versus 2.7x for the peer group."

Creative Model Drives Sales Growth, Cost Reductions

"Management has created a novel business model which has demonstrated enviable organic and inorganic growth success," said Goldman. This strategy attracts customers leading to repeat orders, and cross-merchandising across DBGI's multiple brands. The Company's approach, combined with its targeted M&A strategy, could lead to industry-leading sales growth and above-average margins. Plus, M&A integration and cross-sales occur, fixed costs decline.as a percentage of revenue."

Key Milestone, Forecasts

"DBGI is set to close a key acquisition in 2Q22 which should drive sales and be accretive this year. Meanwhile, our forecasts suggest sales will jump from $7.6M in 2021 to $52M in 2022 and $87M in 2023. EBITDA is slated to occur beginning in 4Q22, with annual EBITDA in 2023. Against this backdrop, our price target reflects a slight premium to the average 2022 P/S ratio afforded its peer group, due to the higher sales growth. Plus, upside to the target exists based on the potential of future M&A," concluded Goldman.

About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.

Goldman Small Cap Research is not in any way affiliated with Goldman Sachs & Co.

This press release contains excerpts of our most recently published company update on Digital Brands Group, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from Digital Brands Group, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.

Separate from the factual content of our update about the Company, we may from time to time include our own opinions about the Company, its business, markets, and opportunities. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.

A Goldman Small Cap Research report, update, newsletter, article, trading alert, corporate profile, sector or industry snapshot, podcast interview, or press release is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed and is to be used for informational purposes only. Please read all associated full disclosures, disclaimers, and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other regulatory agency. A Speculative Buy rating for our covered companies is defined as a company that we believe exhibits the potential to generate outsized returns despite inherent, above-average business, market, or financial risk. To download this research report, or any of our research, view our disclosures and disclaimers, or for more information, visit www.goldmanresearch.com. In 2022, Goldman Small Cap Research was compensated $6500 by a third party for research report production.

CONTACT:

Goldman Small Cap Research
Rob Goldman, Analyst
410-609-7100
rob@goldmanresearch.com

SOURCE: Goldman Small Cap Research

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FAQ

What are the sales projections for Digital Brands Group, Inc. (DBGI)?

Digital Brands Group is projected to achieve $52M in sales for 2022 and $87M in 2023.

How did Digital Brands Group's sales perform from 2020 to 2021?

Sales for Digital Brands Group increased by 44% from 2020 to 2021.

What is Digital Brands Group's price/sales ratio compared to its peers?

Digital Brands Group has a price/sales ratio of 0.5x, while its peer group averages 2.7x.

What key strategy is Digital Brands Group implementing for growth?

Digital Brands Group is employing a unique M&A and operational strategy to enhance sales and market share.

When is the key acquisition for Digital Brands Group expected to close?

The key acquisition for Digital Brands Group is set to close in 2Q22.