William Blair analyst Dylan Carden has maintained their bullish stance on RVLV stock, giving a Buy rating on November 1.
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Dylan Carden has given his Buy rating due to a combination of factors that suggest a favorable outlook for the Revolve Group. Despite mixed intraquarter data, there are signs of improvement in exit trends, particularly in the early weeks of October, which show strength and provide a positive setup for the upcoming fourth quarter. This is further supported by the potential resolution of tariff issues and a resilient consumer base, which could create a modestly favorable environment for Revolve.
Looking at the longer-term prospects, Carden highlights the potential for retail expansion as a significant driver of growth and margin improvement over the next decade. With the online apparel market in the U.S. having a penetration rate exceeding 50%, Revolve is well-positioned to capitalize on this trend through category extension. Although the shares trade at a higher PE ratio, the potential for exceeding industry growth rates and the opportunity for retail expansion justify the Buy rating, despite the risks associated with early-stage retail growth initiatives.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Revolve Group, and thredUP. According to TipRanks, Carden has an average return of 17.1% and a 58.41% success rate on recommended stocks.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $24.50 price target.