Retail

Why Wall Street Is So Bullish on Revolve Group

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The quiet period has come to a close for Revolve Group Inc. (NYSE: RVLV) and analysts are starting to weigh in on the firm. Most analysts were fairly positive, with only one real detractor.

Revolve is self-described as the next-generation fashion retailer for Millennial and Generation Z consumers. It acts like a premium lifestyle brand and a go-to online source for discovery and inspiration. The firm has a sizable curated offering totaling over 45,000 apparel, footwear, accessories and beauty styles.

Overall, the analysts cited Revolve’s financial performance, influencer marketing strategy and opportunities to expand internationally as key differentiators and growth drivers.

In fact, the company listed some of its highlights from 2018:

  • Revolve had an average of 9.4 million unique visitors per month.
  • It delivered approximately 79% of net sales at full price.
  • The company retained 89% of net sales from the prior year’s customers.
  • Revolve also had $498.7 million in net sales, with a net income of $46.5 million.

Here’s what analysts had to say:

  • Merrill Lynch initiated the stock with a Neutral rating.
  • Jefferies started it with a Buy rating and a $69 price target.
  • Morgan Stanley initiated it with an Overweight rating and a $39 target.
  • Raymond James initiated it with at Outperform with a $40 price target.
  • Barclays started coverage at Equal Weight with a $32 price target.
  • Cowen started it with an Outperform rating and a $42 target price.
  • Guggenheim initiated it with a Buy rating and a $50 target price.

Shares of Revolve Group traded up over 8% at $35.56 on Tuesday, in a 52-week range of $25.11 to $48.36.


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