RVLV - Revolve Group sees ratings cut at Cowen on concerns over demand headwinds

2023-05-22 10:54:18 ET

TD Cowen downgraded Revolve Group ( NYSE: RVLV ) to a Market Perform rating after having the online retailer set at Outperform with very few near-term catalysts seen working in the stock's favor..

While Revolve Group ( RVLV ) is viewed as one of the best in class e-commerce businesses driven by data and event-driven marketing strategies, analyst Oliver Chen said the firm moved to the sidelines due to the view the stock will be rangebound in the near term. The cool appraisal on Revolve Group ( RVLV ) is due in part to its exposure to aspirational shoppers and elevated returns, as well as higher inventory levels. RVLV is also noted to be lapping outsized post-pandemic dress demand from last year and margin upside is seen as being less likely for the near term.

Per TD Cowen's consumer tracker survey, there has been a general slowdown with the percentage of respondents indicating they have purchased on Revolve's ( RVLV ) website.

Shares of Revolve Group ( RVLV ) gained 0.27% in early trading on Monday to $16.60. The 52-week high on the stock is $33.67. Short interest currently stands at 28% of total float for the stock.

More on Revolve Group:

• Revolve Group earnings call transcript
• Growth metrics on Revolve Group
• Relative strength index and moving averages
• Seeking Alpha's Quant Rating for Revolve Group

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