Revolve Group price target lowered to $28 from $33 at Raymond James

Raymond James lowered the firm’s price target on Revolve Group (RVLV) to $28 from $33 and keeps an Outperform rating on the shares. Revolve delivered a strong Q1 revenue beat but weaker gross margins and in-line EBITDA, with margin pressure from a less favorable full-price mix and higher marketing spend supporting long-term growth initiatives, while updated guidance reflects continued near-term gross margin headwinds despite ongoing investment in the brand, the analyst tells investors in a research note.