REV Group (REVG – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Angel Castillo from Morgan Stanley maintained a Hold rating on the stock and has a $34.00 price target.
Angel Castillo has given his Hold rating due to a combination of factors that present both positive and cautious elements for the REV Group. The company’s recent earnings report showed a notable beat in adjusted EPS, driven by stronger-than-expected performance in the Specialty and Recreational Vehicles segments. This indicates robust top-line growth and improved margins, which could strengthen investor confidence in the company’s near-term and long-term financial targets.
However, despite these positive results, Castillo maintains a cautious outlook due to potential financial risks associated with tariffs. The fixed nature of REV Group’s contracts could make it challenging to pass through costs in real-time, posing a risk to future profitability. Additionally, while the company’s FY25 guidance remains solid, aligning closely with market expectations, these factors combined suggest a balanced view, justifying the Hold rating.
REVG’s price has also changed slightly for the past six months – from $25.920 to $27.950, which is a 7.83% increase.
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