TD Cowen analysts downgraded Revolve Group (NYSE:RVLV) 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.
"RVLV reported 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.