Update shared on31 Jul 2025
Fair value Increased 9.27%Strong operational efficiency, robust demand in Fire and Specialty Vehicles, and raised EBITDA guidance are supporting positive outlooks for REV Group, though Recreation segment margin pressures persist; consensus analyst fair value remains unchanged at $50.33.
Analyst Commentary
- Bullish analysts highlight stronger than expected operational efficiency and cost controls, contributing to higher company throughput, particularly in the Fire and Specialty Vehicles segments.
- Demand for REV Group’s products, especially fire and emergency vehicles, remains robust, supporting upgraded outlooks despite macroeconomic uncertainties.
- Q2 earnings consistently exceeded expectations, prompting management to raise EBITDA guidance for FY25 and express confidence in achieving long-term EBITDA targets for FY27.
- Improved price/cost dynamics and margin visibility, supplemented by a solid order backlog in key segments, are supporting positive analyst sentiment.
- Bearish analysts note lingering concerns in the Recreation segment, where in-line EBITDA and lower unit volumes are leading to margin pressure.
What's in the News
- REV Group dropped from multiple Russell indexes, including the Russell 2000, 2500, 3000, and Microcap-related benchmarks.
- The company completed a buyback of 3,456,979 shares (6.68% of outstanding) for $107.52 million.
- Fiscal Year 2025 guidance set net sales between $2,350 million and $2,450 million, with net income forecasted between $88 million and $107 million.
- American Coach, a REV brand, launched a new American Eagle luxury motorhome model, custom-designed with influencers, featuring high-end specifications and exclusive features.
Valuation Changes
Summary of Valuation Changes for REV Group
- The Consensus Analyst Price Target remained effectively unchanged, at $50.33.
- The Discount Rate for REV Group remained effectively unchanged, at 7.62%.
- The Future P/E for REV Group remained effectively unchanged, at 11.32x.
Disclaimer
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