Piper Sandler has raised its price target on Revolve Group stock (RVLV) to $30 from $25 and kept an Overweight stance on the shares. At the time of the update the shares were trading at $24.16, with a market capitalization of $1.85 billion.
The brokerage attributed its move to accelerating market share gains as Revolve delivered double-digit sales growth in the fourth quarter of 2025, a pace that represented a 10-point acceleration on a two-year basis. Piper Sandler said the company is attaining better margins while taking share in the contemporary luxury segment amid competitor dislocation.
Company-level profit metrics remain robust. Revolve records a gross profit margin of 53.5% and has more cash than debt on its balance sheet, a combination Piper Sandler views as supportive of the retailer's expansion strategy.
Quarter-to-date sales momentum has continued, with sales accelerating to 16%, driven by strength across both of Revolve’s brands and in U.S. and international markets. Piper Sandler's model assumes first-quarter 2026 sales will increase by 11%, and the firm sees the potential for continued double-digit top-line gains through 2026.
Management's 2026 guidance carries implications for marketing spend and near-term margin dynamics. At the midpoint, the guidance implies roughly 120 basis points of marketing deleverage after three years of marketing leverage, as Revolve steps up brand marketing to sustain share gains. The company remains focused on medium-term profitability targets, aiming for mid-teens EBIT margins over time while targeting consistent high-single-digit margins in the nearer term.
Piper Sandler's revised $30 price target is founded on an implied valuation of about 18 times estimated 2026 EV/EBITDA, up from the prior multiple of 16 times, reflecting the broker's view of both top-line and bottom-line momentum. Independent valuation analysis presented alongside the firm’s note indicates the stock appears undervalued at current levels, showing a PEG ratio of 0.93.
For investors seeking additional research, Revolve's detailed Pro Research Report is available on the platform that hosts over 1,400 such reports.
Other brokerages have recently adjusted their views on the company, underscoring broad analyst attention to Revolve's progress. KeyBanc reiterated an Overweight rating and maintained a $35 price target, while Jefferies raised its target to $40, pointing to the impact of AI adoption under the co-CEOs on efficiency, conversion and margins. Jefferies had previously lifted its target to $34, highlighting advantages from an AI-driven technology stack on promotional activity and inventory management.
Revolve has also expanded its brick-and-mortar footprint, opening a new flagship store at The Grove in Los Angeles that features merchandise from both the REVOLVE and FWRD brands. Stifel increased its price target to $33, noting that a valuation discount for lifestyle brands entering 2026 could present an opportunity despite the uncertain economic backdrop.
Taken together, the broker updates and the company’s recent execution - from sales acceleration and margin improvement to investment in marketing and physical retail - have led analysts to revise valuations upward and express greater confidence in Revolve’s prospects for 2026.