Why REV Group (REVG) Is Up 6.8% After Short Interest Falls and Terex Merger Advances

• In recent days, REV Group has seen its short interest as a share of float fall by 24.03% to 6.26%, while Horton Emergency Vehicles expanded manufacturing capacity and the firm progressed toward its merger with Terex, after which CEO Mark Skonieczny will not remain with the combined company.
• This combination of reduced bearish positioning, manufacturing expansion, and upcoming corporate integration reframes how investors may assess REV Group’s risk profile and earnings visibility.
• With short interest dropping sharply and signaling shifting sentiment, we’ll now examine how these developments reshape REV Group’s investment narrative.

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REV Group Investment Narrative Recap

To own REV Group today, you need to believe the Terex merger will ultimately enhance the specialty vehicle platform, while current operations in fire, ambulance, and RVs remain resilient despite cost and demand headwinds. The sharp drop in short interest and Horton’s expanded capacity do not materially change the biggest near term swing factors, which are merger execution and the risk that RV demand and margins stay under pressure.

Among recent announcements, Horton Emergency Vehicles’ new facility stands out because it ties directly into the core fire and ambulance catalyst: higher throughput and better delivery performance on a large, multi year backlog. If this added capacity is absorbed efficiently, it can support more dependable earnings from emergency vehicles even as the RV segment and broader specialty backlog normalization introduce more uncertainty elsewhere in the portfolio.

Yet, against this improving sentiment, investors should be aware of how quickly specialty vehicle backlogs can normalize and what that means for revenue once...

Read the full narrative on REV Group (it's free!)

REV Group's narrative projects $2.9 billion revenue and $218.0 million earnings by 2028. This requires 6.0% yearly revenue growth and a $110.0 million earnings increase from $108.0 million today.

Uncover how REV Group's forecasts yield a $62.80 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$42.67 to US$68 per share, underscoring how differently individual investors view REV Group’s upside. Set against this, the risk that specialty vehicle backlogs normalize and pricing pressure returns could meaningfully influence which of those valuations proves closer to how the market ultimately prices the stock.

Explore 4 other fair value estimates on REV Group - why the stock might be worth as much as 20% more than the current price!

Build Your Own REV Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your REV Group research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free REV Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate REV Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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