Jefferies has raised its price target for Revolve Group (NYSE:RVLV) to $40, up from $34, while maintaining a Buy rating on the fashion e-commerce operator.
The brokerage firm said the adjustment reflects broad-based strength in the fourth quarter. Jefferies emphasized that management's focus on software and the accelerated adoption of artificial intelligence under the company’s co-CEOs are producing measurable improvements in efficiency, customer conversion and margin performance.
Operational and brand dynamics
Jefferies noted that Revolve’s owned brands are expanding and contributing positively to margins. International operations, the firm said, are robust and remain in the early stages of development. The premium FWRD label was singled out as a brand that is gaining market share within the company's portfolio.
Balance sheet and cash flow
The analyst pointed to solid free cash flow generation and a "fortress" balance sheet as foundations for the favorable outlook. InvestingPro data cited by the research shows Revolve holds more cash than debt, reports a current ratio of 2.7 and a very low debt-to-equity ratio of 0.07. At the time of the report, the stock was trading at $25.90 and InvestingPro’s Fair Value analysis indicated the shares appeared undervalued, supporting potential upside to Jefferies' $40 target.
Model and coverage updates
Alongside the price target increase, Jefferies raised its financial estimates for the company. Investors seeking additional analysis and detailed financial modelling can consult a Pro Research Report available on InvestingPro, which covers RVLV among more than 1,400 U.S. equities with in-depth research.
Retail footprint and recent openings
Revolve has also expanded its physical presence, opening a two-story, 8,450-square-foot flagship at The Grove shopping center in Los Angeles. The store carries merchandise from both the REVOLVE and FWRD brands and follows the company’s earlier brick-and-mortar move in Aspen.
Other analyst moves
Separately, the article reports that Jefferies had earlier increased a target to $34 while maintaining a Buy rating. In addition, Stifel raised its price target on Revolve Group to $33 and kept a Buy rating, observing that the lifestyle brand’s valuation offers selective opportunities despite uncertain broader conditions.
Conclusion
Jefferies’ upgrade of its price target to $40 rests on recent top-line strength, technology-led efficiency gains, margin contribution from owned brands and a conservative balance sheet profile. The combination of these factors, along with recent retail expansion, underpins the bullish analyst view, while other firms have made more modest target increases but kept Buy recommendations.