11:02 AM EDT, 10/14/2025 (MT Newswires) -- Pattern Group ( PTRN ) delivers a "best-in-class" e-commerce acceleration platform and is a "key enabler" for brands targeting to optimize their e-commerce strategies, KeyBanc Capital Markets said in a Tuesday note initiating coverage of the company's stock.

The company has a large total addressable market of around $4 trillion, providing significant room for growth, while its sticky platform and product innovation drives more than 20% annual revenue growth in the medium term, KeyBanc analysts said. They added that optionality exists for new capabilities to ramp up, such as fulfillment services.

On the flip side, Pattern has structurally high revenue exposure to Amazon ( AMZN ) , creating a potential vulnerability from changes in Amazon's ( AMZN ) platform, the analysts said. The company also has a disproportionate exposure to the health and wellness vertical, sensitivity to economic cycles, and limited margin expansion due to its investment initiatives, they said.

Pattern's current valuation of about 11 times its estimated enterprise value to earnings before interest, taxes, depreciation, and amortization ratio for 2027 is low relative to its consistent revenue growth of more than 20%, which is supported by the company's innovation and delivered value to brands, the analysts said.

KeyBanc initiated coverage of the company's stock at overweight with a price target of $18.

Price: 13.97, Change: -0.01, Percent Change: -0.04