William Blair analyst Dylan Carden has maintained their bullish stance on RVLV stock, giving a Buy rating today.
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Dylan Carden has given his Buy rating due to a combination of factors discussed in recent meetings with Revolve’s CFO, Jesse Timmermans. The company has demonstrated a strong historical growth trajectory, achieving a 26% annualized growth rate over five years leading into 2020. Although growth has slowed to 8% in recent years, largely due to recovery from the pandemic, the management remains optimistic about returning to double-digit sales growth.
Revolve’s potential for growth is further supported by opportunities in international expansion, retail, and possible mergers and acquisitions, which management is increasingly interested in exploring. Additionally, the company is expected to improve its margins by leveraging general and administrative expenses and increasing private label penetration. These factors, combined with efficiencies gained from navigating tariff challenges, provide a solid foundation for future growth, justifying the Buy rating.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $27.00 price target.