UPDATE: Needham & Company Starts Revolve Group (RVLV) at Buy

March 17, 2022 5:58 AM EDT
Get Alerts RVLV Hot Sheet
Price: $26.92 --0%

Rating Summary:
    16 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 11 | New: 44
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(Updated - March 17, 2022 5:58 AM EDT)

Needham & Company analyst Anna Andreeva initiates coverage on Revolve Group (NYSE: RVLV) with a Buy rating and a price target of $60.00.

The analyst comments "We initiate coverage of RVLV with a Buy and a $60 PT. With its unique influencer model, RVLV fits the bill, near term, as an ultimate reopening play (with Coachella ahead for the first time since '19, we think there's upside to Street's 35% sales growth expectations in 1H22). Longer term, we forecast consistent 20% and 15% growth in sales and EBITDA, respectively. Driving consumer overlap between REVOLVE and FWRD provides upside--we estimate an increase to 10% penetration between the two brands could yield an incremental $100M+ in sales (by '23); plus, given its premium price points, historically the brands withstand inflation better than most. At 2.8x our 2022 sales estimate, valuation is back to pre-pandemic levels--we think a premium is warranted given RVLV's attractive combination of strong top line and bottom line growth."

For an analyst ratings summary and ratings history on Revolve Group click here. For more ratings news on Revolve Group click here.

Shares of Revolve Group closed at $47.03 yesterday.


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