TD Cowen analyst Oliver Chen maintained a Buy rating on Revolve Group (RVLV – Research Report) yesterday and set a price target of $34.00.
Oliver Chen has given his Buy rating due to a combination of factors including Revolve Group’s impressive fourth-quarter performance, where revenue and EBITDA surpassed market expectations. The company’s guidance appears conservative, yet it is positioned for future growth with strategic initiatives such as store openings and brand development. Chen emphasizes the importance of Revolve’s focus on creating engaging physical store experiences and maintaining its cultural and fashion relevance in a challenging retail landscape.
Revolve’s strong international growth, particularly in the FWRD segment, is another reason for optimism. The company has demonstrated robust performance across various segments and geographies, with international sales outpacing domestic growth. Chen notes the potential for further expansion in the FWRD segment due to improved inventory positions. Additionally, despite some conservative assumptions in gross margin guidance, Revolve’s strategic investments in long-term growth, including new store openings and private brand launches, are expected to yield positive results in the coming years.