Revolve Group cut at TD Cowen on lack of near-term catalysts

TD Cowen analysts downgraded Revolve Group (NYSE:) to Market Perform from Outperform, lowering the price target to $19 from $30 per share in a note Monday.

They labeled RVLV as the “hottest Gen Z retailer,” but said growth has cooled, and the firm sees the stock as rangebound in the near term.

” 1Q23 EPS revenue and EBITDA below Street, and trends in March and April slowed leading to QTD sales down -7%,” wrote the analysts.

“Active customer count growth (TTM) is moderating to +18% y/y vs. +27% in 4Q22, +34% in 3Q22, +39% in 2Q22, and +38% in 1Q22 as macro pressure weighs on consumers, and we see near-term headwinds persisting.”

The analysts concluded that RVLV is “one of the best-in-class e-commerce businesses” driven by data and event-driven marketing strategies. They also said the stock is inexpensive. However, TD Cowen sees a lack of near-term catalysts.