RVLV - Revolve Group is called the ultimate reopening play by Needham

Needham started off coverage of Revolve Group (NYSE:RVLV) with a Buy rating. The online retailer is seen offering growth and profitability to investors with both the Revolve and FWRD brands providing sales upside off pent-up demand from the reopening. Analyst Anna Andreeva: "With its unique influencer model, RVLV fits the bill, near term, as an ultimate reopening play (with Coachella ahead for the first time since '19, we think there's upside to Street's 35% sales growth expectations in 1H22). Longer term, we forecast consistent 20% and 15% growth in sales and EBITDA, respectively." Andreeva said that at 2.8X the firm's 2022 sales estimate, valuation is back to pre-pandemic levels. A premium is said to be warranted given RVLV's attractive combination of strong top line and bottom line growth. Needham assigned a price target of $60 PT which is based on 2.8X EV/sales and 24X EV/EBITDA multiples on the respective 2023

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Revolve Group is called the ultimate reopening play by Needham