Jefferies upgrades Revolve Group to 'buy' on likely sales boost

Revolve

13/09/2021 12:19

** Brokerage Jefferies upgrades shares of online fashion
retailer  RVLV.N  to "buy" from "hold" on expectations of a
strong growth for "robust platform"
    ** Analyst Randal Konik says return of in-person events,
meaningful driver of business, should boost RVLV's revenue as
vaccination rates increase in key markets
    ** RVLV's strong top-line recovery should benefit from shift
to higher price point products such as dresses from lower price
point products, including loungewear - brokerage
    ** Jefferies notes RVLV drives over 50% of Revolve traffic
from free and low-cost sources, noting it has more than 7.5
million Instagram followers
    ** Efforts to build its own brands should drive up margins -
Konik
    ** Average rating among 17 analysts is "buy" and median PT
is $78 - Refinitiv
    ** Shares have doubled this year

 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))