eve Sleep (EVE) shares up by 60% after new deal: Should you invest?

February 24, 2022 02:40 AM PST | By Rishika Raina

eve Sleep (EVE) shares up by 60% after new deal: Should you invest? — Image source: Shutterstock.com

The new partnership

On 23 February 2022, London-based sleep wellness brand eve Sleep entered a retail partnership with DFS, which is a furniture retail firm. According to the details, the partnership would start off with covering of the dfs.co.uk website from 3 March 2022. Every month, the website attracts around 2.7 million visitors.

The products offered by eve Sleep include comfortable mattresses, premium bed frames and a wide range of sleep-inducing treats. All these and much more will now be available for sale at the DFS showrooms later this year. The product range offered to the customers is expected to expand later.

According to eve Sleep CEO Cheryl Calverley, the partnership would result in the expansion of our retail business and help eve Sleep products in reaching a wider audience. The sales of the company and customer base are expected to increase.

eve Sleep shares soar after partnering with DFS

eve Sleep’s share price performance

The award-winning mattress brand eve Sleep is listed on the Alternative Investment Market (AIM) of the London Stock Exchange since May 2017. The market cap of the company stands at £7.68 million as of 23 February 2022.

In the past year, eve Sleep hasn’t performed well due to the slump in its sales caused by the pandemic, and its one-year return stands at -48.91%, as of 23 February 2022. However, its performance has improved since the beginning of 2022 and its year-to-date return stands at 6.46% as of 23 February 2022.

While trading during the day on Wednesday, its shares went up 79%, touching GBX 3.13. However, if we compare this price to eve Sleep’s IPO price of GBX 101.00 in 2017, we can say that the company still has a long way to go to reach its potential value.

eve Sleep PLC’s shares were trading at GBX 2.30, down by 17.86%, around 9 AM BST, on 24 February 2022.

DFS Furniture’s share price performance

While eve Sleep’s shares soared by 60% after the partnership, shares of DFS were down on Wednesday. DFS Furniture plc’s shares closed at GBX 228.00, down by 3.18%, on 23 February 2022.

Shares of DFS were down on Wednesday

The company has been able to sustain during the pandemic phase and has provided its shareholders with a return of 5.07% over the last one year as of 23 February 2022. Its performance in 2022 has gone down though, its year-to-date return stands at -13.96%.

DFS Furniture PLC is listed on the London Stock Exchange’s main market since March 2015, and its market cap stand at £589.23 million as of 23 February 2022.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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