Cettire shares tumble on Bell Potter downgrade
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The news: Shares in Cettire tumbled after broking house Bell Potter downgraded its rating on the luxury e-commerce platform last week.
The numbers: Cettire shares were trading 10% lower at $3.65 by 11:50am AEDT.
Last week, Bell Potter lowered its 'buy' rating on the company to 'hold' on Thursday, as the stock closed lower at $4.05. It also lowered its price target from $4.80 to $4.50.
Analyst Chami Ratnapala noted: "As we now head into 4Q24, we think the stock looks reasonably well priced at current levels considering the tougher comps ahead from 4Q24 onwards and as we anticipate the China market entry to be leaning well into FY25".
The context: The downgrade came after unrelated analysis was published by the anonymous Taxloss account on Substack, claiming Cettire is not correctly registered for sales tax in California and Texas.
In written correspondence, published on the blog, the Texas Comptroller confirmed there is an open collection on an account registered to Cettire’s subsidiary Ark International which is in “bad standing”.
However, Cettire dismissed the claims.
What they said: A Cettire spokesperson told Capital Brief: "The matter with Texas was an administrative matter and in no way related to the collection or remittance of sales tax".
"Cettire is registered for sales tax and remits sales tax in the states where it believes it has registration obligations," they said.
The source: Bell Potter research
