Revolve Group's Q3 Results Unlikely to Shift Estimates or Valuation, UBS Says

MT Newswires Live10-28

Revolve Group's (RVLV) upcoming Q3 earnings are unlikely to lead analysts to significantly revise their estimates or materially change its price-to-earnings ratio, UBS Securities said in a Tuesday note.

The company is slated to report its Q3 financial results on Nov. 3.

Checks by UBS analysts suggested Q3 revenue trends were "solid," but they believe investors have a similar view. The analysts described sentiment around Revolve as mixed, citing elevated crowding, short interest below its five-year average and a valuation below its historical average.

The analysts forecast Q3 revenue growth of 16.3% and EPS of $0.22, both broadly in line with consensus estimates. They also agreed with the options market's implied 7.5% stock move around earnings, compared with a historical average move of 10.5%.

UBS maintained its neutral rating on the stock and lowered its price target to $27 from $29.

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