KeyBanc Turns Bullish on Revolve Group, Inc. (RVLV) as Tariff Risks Ease and Profitability Improves Growth-Focused

We recently published an article titled 12 High Growth E-commerce Stocks To Buy. 

On January 22, KeyBanc raised its price target on Revolve Group to $35 from $25 while maintaining an Overweight rating on the shares. The firm pointed to growing confidence in the company’s tariff mitigation initiatives, improving profitability profile, and continued assortment diversification as key factors underpinning its more constructive outlook. KeyBanc believes these elements position Revolve Group, Inc. (NYSE:RVLV) well to sustain growth despite a volatile consumer and retail environment.

The company’s third quarter 2025 results supported this optimism, with adjusted EBITDA rising 45% year over year to $25 million, the highest level ever recorded for a third quarter. Margin expansion was driven by disciplined cost management and operating leverage, alongside targeted investments in technology. Management highlighted the increasing use of artificial intelligence across design and back-office functions, which is contributing to improved productivity, faster decision-making, and meaningful cost efficiencies across Revolve Group, Inc. (NYSE:RVLV).

Founded in 2003 and headquartered in Cerritos, California, Revolve Group, Inc. (NYSE:RVLV) operates as an online fashion retailer catering primarily to millennial and Generation Z consumers in the U.S. and internationally. The company runs two core segments, REVOLVE and FWRD, blending data-driven merchandising with influencer-led marketing and premium brand partnerships.

While we acknowledge the potential of RVLV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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