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Investing.com - UBS raised its price target on Revolve Group (NYSE:RVLV) to $23.00 from $22.00 on Tuesday, while maintaining a Neutral rating on the fashion retailer’s stock. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.71 and more cash than debt on its balance sheet.
The investment firm expects Revolve’s upcoming third-quarter report will not trigger significant changes to the price-to-earnings ratio or analyst estimates. UBS noted its market checks indicate solid revenue trends for the quarter. With 14 days until earnings and 4 analysts revising their earnings estimates upward, InvestingPro’s comprehensive analysis suggests the company remains undervalued relative to its Fair Value.
The stock has gained 5% since Revolve’s second-quarter earnings release, matching the S&P 500’s performance over the same period, which UBS suggests reflects market expectations already aligning with the company’s likely results.
UBS anticipates Revolve will maintain its fiscal year 2025 guidance, as tariff assumptions built into the company’s forecast have not changed materially. The firm projects third-quarter earnings per share of $0.13, slightly above the Street’s estimate of $0.12.
The options market is pricing in a potential 10.6% move in either direction following the earnings report, compared to the stock’s historical average movement of 10.8%, though UBS expects less volatility than the options market implies.
In other recent news, Revolve Group LLC reported its second-quarter earnings for 2025, showcasing a robust financial performance. The company revealed that its revenue reached $309 million, surpassing forecasts by 3.71%. Earnings per share (EPS) aligned with expectations at $0.14. These results demonstrate Revolve’s ability to outperform revenue projections, which is a key point of interest for investors. The earnings release did not include any mention of mergers or acquisitions. Additionally, there were no updates on analyst upgrades or downgrades for the company. This information reflects the latest developments concerning Revolve Group LLC.
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