Update shared on05 Sep 2025
Fair value Increased 7.88%Upward revisions to REV Group’s price target reflect consistent operational execution, sustained demand in its Fire/Ambulance segment, and improved efficiency, prompting analysts to raise fair value from $55.00 to $59.33.
Analyst Commentary
- Bullish analysts highlight consistent operational execution, providing greater visibility into performance through 2026 and beyond.
- Positive price target revisions reflect a series of beat-and-raise quarters, with the company now tracking well toward its long-term FY27 financial targets.
- Sustained demand and multi-year visibility for Fire/Ambulance segment sales and margins are underpinning optimism, while recreational vehicle segment stability adds confidence.
- Improved price/cost dynamics and enhanced operational efficiency have led to stronger company throughput, supporting higher valuations.
- Previously underestimated strong execution and resilient end-market demand, especially in fire and emergency vehicles, have caused analysts to reassess the stock's risk/reward profile as more balanced.
What's in the News
- The company completed the repurchase of 3,456,979 shares (6.68%) for $107.52 million under its current buyback program, with no additional shares repurchased between May 1 and July 31, 2025.
- Fiscal 2025 guidance was raised: Net sales now expected at $2,400 million to $2,450 million (prior: $2,350 million to $2,450 million) and net income at $95 million to $108 million (prior: $88 million to $107 million).
- Spartan Emergency Response began a $20 million facility expansion in Brandon, increasing custom apparatus production capacity by 40%, adding 56,000 sq. ft., creating 50 new jobs, and enhancing regional economic impact.
- REV Group was dropped from multiple Russell indexes, including the Russell 2000 Value, 2500 Value, 3000E Value and Growth, Small Cap Comp Value, Microcap Growth/Value, and related indexes.
- American Coach launched a new custom-designed luxury motorhome floorplan for its American Eagle line, in collaboration with influencers, featuring upgraded powertrain, bespoke interiors, and expanded amenities.
Valuation Changes
Summary of Valuation Changes for REV Group
- The Consensus Analyst Price Target has risen from $55.00 to $59.33.
- The Consensus Revenue Growth forecasts for REV Group has significantly fallen from 7.7% per annum to 4.9% per annum.
- The Future P/E for REV Group has significantly risen from 11.36x to 13.46x.
Disclaimer
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