Analyst Nathan Feather from Morgan Stanley maintained a Hold rating on Revolve Group and increased the price target to $26.00 from $24.00.
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Nathan Feather has given his Hold rating due to a combination of factors related to Revolve Group’s recent financial performance and future growth prospects. The company’s third-quarter revenue growth of 4% year-over-year slightly missed expectations, but this was offset by a significant improvement in gross margins, which exceeded forecasts by approximately 300 basis points. This margin improvement was largely due to reduced markdown inventory and increased sales of full-price and owned brand products.
Despite these positive developments, Feather remains cautious about the company’s ability to accelerate top-line growth, which has decelerated over the year. While there is potential for growth improvement through 2026, particularly with new owned brand launches and collaborations, Feather prefers to see more concrete evidence of revenue acceleration before becoming more optimistic. Consequently, he maintains a Hold rating, reflecting a wait-and-see approach as the company navigates these challenges and opportunities.
In another report released today, Barclays also maintained a Hold rating on the stock with a $24.00 price target.