Revolve Group assumed with an Equal Weight at Morgan Stanley

Morgan Stanley assumed coverage of Revolve Group with an Equal Weight rating and unchanged $18 price target following the company’s “better than feared” Q4 sales and profitability. However, the Q4 results were “dampened” by weaker Q1-to-date sales trends, which leaves long-term debate around how much of the sales slowdown is macro versus a result of total addressable market limits, the analyst tells investors. The stock will remain range bound until visibility improves, the analyst argues.