Stifel Sustains Bullish Stance on Revolve Group Amid Mixed Institutional Signals

ser_ngmi · 2025-12-26T06:09:32+00:00

Stifel maintains a Buy rating on Revolve Group, but analysts show caution with a price target of $26.01, indicating potential short-term declines. Institutional ownership has decreased, with mixed signals from major stakeholders about the company's future. Overall, while optimism exists regarding revenue growth, careful assessment remains necessary.

ser_ngmi

2025-12-26 06:09:32

Abstract generation in progress

On December 12, 2025, Stifel reaffirmed its positive outlook on Revolve Group (NYSE: RVLV) with a Buy rating, signaling confidence in the fashion e-commerce retailer’s near-term prospects. However, analyst consensus suggests a more cautious near-term horizon.

Valuation Snapshot: Price Target Indicates Near-Term Headwinds

As of December 6, 2025, Wall Street’s consensus price target for RVLV stands at $26.01 per share, implying an 8.96% pullback from the stock’s recent close of $28.57. Analyst estimates range widely—from $20.20 at the conservative end to $31.50 for bulls—reflecting divided opinion on Revolve Group’s trajectory. Despite the near-term pressure suggested by these targets, the company’s fundamentals show promise: projected annual revenue is expected to reach $1,480 million (up 23.85% year-over-year), with non-GAAP earnings per share forecast at $1.55.

Institutional Positioning: A Quarter of Shifting Allegiances

The institutional ownership landscape reveals a pullback in enthusiasm. Revolve Group attracted positions from 420 funds and institutions, down 13 holders (3.00%) quarter-over-quarter. While the average portfolio allocation to RVLV increased marginally to 0.12% (+6.94%), total institutional share count declined 4.00% to 57.62 million shares—a subtle but telling signal of reduced conviction. The put/call ratio of 0.57 suggests lingering bullish sentiment, though below previous confidence levels.

Major Holders Recalibrating Stakes

Kayne Anderson Rudnick Investment Management, a significant stakeholder with 4.41 million shares (10.91% ownership), trimmed its position by 34.73% in the latest quarter, reducing its allocation weight by nearly a fifth. This contrasts sharply with other institutions doubling down. The Virtus KAR Small-Cap Growth Fund (PSGAX) increased its stake to 3.47 million shares (8.58% ownership), expanding its position 20.85% while boosting allocation by 24.02%—a vote of confidence in Revolve Group’s growth narrative.

Fidelity Growth Company Fund maintains a 4.81% stake with 1.94 million shares, though it pared back its portfolio weighting despite a modest 1.58% position increase. Goldman Sachs Group and William Blair Investment Management have also adjusted their Revolve Group exposure, with mixed signals about the stock’s medium-term attractiveness.

The Bottom Line

Stifel’s Buy rating on Revolve Group reflects selective optimism about the company’s revenue expansion and profitability trajectory. Yet the trimming by established names and modest downside risk in analyst targets suggest that while believers remain, caution is warranted near current levels. The divergence between Stifel’s bullish stance and the cautious consensus price target leaves room for both value hunters and risk-averse investors to reassess their positioning.

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