Analyst Angel Castillo of Morgan Stanley maintained a Sell rating on REV Group (REVG – Research Report), retaining the price target of $33.00.
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Angel Castillo has given his Sell rating due to a combination of factors impacting REV Group’s financial outlook. Despite the company’s recent earnings surpassing expectations, concerns arise from the anticipated decline in Adjusted EBITDA in the latter half of the fiscal year. This projected reduction suggests potential challenges in maintaining the strong performance observed in the second quarter.
Additionally, while the company has raised its revenue and EBITDA guidance for the full year, the forecasted decrease in Adjusted Net Income due to increased interest expenses and customer advances poses a risk. These financial pressures, coupled with the conservative nature of the company’s future guidance, contribute to a cautious outlook on the stock’s performance.
In another report released on May 28, Goldman Sachs also maintained a Sell rating on the stock with a $30.00 price target.
REVG’s price has also changed moderately for the past six months – from $32.480 to $42.940, which is a 32.20% increase.