KeyBanc reiterated its Overweight rating on Revolve Group and maintained a $35.00 price target, citing continued top-line strength and operational progress. The firm said the company's fourth-quarter performance was broadly positive and that momentum carried into early 2026.
Sales for Revolve increased by approximately 16% during the first seven weeks of the year, the bank noted. The stock is trading at $25.90 and the company has a market capitalization of $1.85 billion. Analysis on InvestingPro indicates the shares appear undervalued relative to the platform's assessment of Fair Value.
KeyBanc pointed out that part of the year-over-year strength reflects easier comparisons following a softer January in the prior year. The analyst emphasized that Revolve continues to prioritize assortment expansion and growth of its owned brands, as well as international expansion. The company is also investing in artificial intelligence and brand-awareness initiatives, according to the report.
The firm highlighted several financial characteristics underpinning its view: Revolve maintains a healthy balance sheet with more cash than debt, and the company reported a gross profit margin of 53.5% over the last twelve months. KeyBanc adjusted its internal estimates to align with guidance the company supplied, and said those revisions reinforce confidence that Revolve can sustain its growth trajectory.
While noting that macroeconomic conditions remain volatile, the analyst expressed confidence in Revolve's direction entering 2026 based on operational execution and progress on key initiatives. For investors seeking deeper analysis, KeyBanc directs users to a comprehensive Pro Research Report on RVLV, which is available through InvestingPro and covers more than 1,400 U.S. equities.
Other broker activity and company developments
Revolve has attracted attention from other sell-side firms as well. Jefferies has increased its price target to $40 from $34 and maintained a Buy rating, attributing the change to AI-driven improvements that the firm says have bolstered efficiency, conversion and margins. This move follows an earlier Jefferies increase from $28 to $34. Stifel also raised its price target to $33 from $28, citing prospects for lifestyle brands despite uncertain economic conditions.
On the retail side, Revolve has expanded its physical footprint with the opening of a new flagship store at The Grove in Los Angeles. The two-story location covers 8,450 square feet and stocks merchandise from both the REVOLVE and FWRD brands, reflecting a strategic push into experiential retail.
Takeaway
KeyBanc's reiteration of an Overweight rating and unchanged $35.00 price target rests on a combination of recent sales acceleration, margin strength, a cash-rich balance sheet and continued investments in assortment, owned brands, international growth and AI. Other brokerages have moved their targets higher, and the company has complemented its digital business with a sizable new flagship store in Los Angeles.
Summary - Key facts
- KeyBanc rating: Overweight; price target: $35.00.
- Sales up ~16% in the first seven weeks of the year.
- Stock price cited: $25.90; market cap: $1.85 billion.
- Gross profit margin: 53.5% over the last twelve months.
- Balance sheet: more cash than debt.