BMO Capital analyst Simeon Siegel maintained a Hold rating on Revolve Group (RVLV – Research Report) yesterday and set a price target of $19.00.
Simeon Siegel has given his Hold rating due to a combination of factors influencing Revolve Group’s performance. The company reported better-than-expected sales and improved return rates, driven by a positive mix shift and strong performance from FWRD. However, despite these positive indicators, the sales growth for the current quarter was slightly below market expectations, partly due to an uneven February calendar impacting results.
Moreover, while Revolve Group has shown improvements in gross margin and a favorable outlook for SG&A expenses, the valuation remains a concern. The company’s current market valuation seems to reflect a high-growth tech company rather than a fashion retailer, which may not align with its actual business model and growth trajectory. Consequently, Siegel remains cautious, maintaining a Hold rating with a target price of $19, based on projected earnings for FY26.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $29.00 price target.