Bank of America Securities analyst Lorraine Hutchinson reiterated a Sell rating on Revolve Group (RVLV – Research Report) today and set a price target of $25.00.
Lorraine Hutchinson’s rating is based on several factors that suggest limited growth potential for Revolve Group. Despite the encouraging sales momentum, particularly in the fourth quarter where earnings per share exceeded expectations, Hutchinson sees constrained margin expansion in 2025. The sales growth in both Revolve and FWRD segments is notable, yet the anticipated margin improvements are modest, with only a slight increase projected for 2025.
Additionally, while return rates have improved and sales have shown positive trends, the overall outlook for 2026 indicates continued cost pressures. The price objective has been raised to $25, reflecting these concerns, and remains below the current trading price. Hutchinson’s analysis suggests that despite some positive indicators, the financial outlook is not strong enough to warrant a more favorable rating, leading to the Sell recommendation.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 5.9% and a 54.06% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Lululemon Athletica, and Signet Jewelers.