The Redbubble Ltd (ASX: RBL) share price has taken an almighty beating over the last 12 months.
As you can see on the chart below, during this time the ASX tech share has lost almost 60% of its value.
Things are even worse if you go a little further back. After peaking at over $7.00 in 2021, the online artist marketplace platform provider's shares have crashed approximately 95%, closing yesterday's session at 40 cents. Ouch!
Investors may be wondering if this sizeable decline has created a buying opportunity. Well, let's find out!
Is this ASX tech share a bargain buy now?
Goldman Sachs has been running the rule over this ASX tech share one final time before dropping coverage (for an unspecified reason).
While its analysts see plenty of value in the Redbubble share price, it still doesn't appear to be enough to create a sufficient margin of safety.
As a result, the broker has dropped coverage with a final rating of neutral and a price target of 59 cents.
Goldman explained that there is a lot of uncertainty at the moment and believes investors should be waiting for more clarity on Redbubble's cost reductions and the impact this has on its revenue before considering an investment. It explains:
The company has shifted its focus towards cost management as a response to a weaker consumer environment which has seen demand ease and promotional intensity step up. While we think this is prudent as management focuses on preserving its existing cash balance, we are more cautious on the impact this may have on the revenue outlook and RBL's ability to scale over the medium term given the pull back in revenue generating investment (Redbubble marketplace headcount, brand investment).
We believe the market will need to see greater clarity on RBL's strategy to scale the business under the new cost base, as well as a stabilisation of near term revenue growth trends to garner a re-rate. We believe the current valuation adequately reflects the risk/reward profile of the business. Our final rating is Neutral. Our 12m TP of A$0.59 is derived based on DCF.
