Raymond James has revised its outlook on Revolve Group (RVLV, Financial), lowering the stock's price target from $33 to $25, while maintaining an Outperform rating. The adjustment comes amid looming concerns over tariffs that are expected to dominate discussions during earnings calls and influence the stock's performance narratives.
The research note from Raymond James suggests that although tariffs are likely to be a major topic, detailed forecasts regarding their financial impacts might not be provided by companies due to rapidly changing government policies. Should the so-called Liberation Day tariffs be enforced, the firm anticipates a notable negative effect on Revolve Group's gross margins and earnings per share (EPS).
Furthermore, Raymond James expresses concern over potential collateral damage to consumer demand, as increased inflation could lead to a pullback in consumer spending. This scenario, according to the firm's analysis, could exacerbate the financial pressures on Revolve Group, impacting its overall performance in the market.
