Reformation

REF · NYSE

$14.50+$0.15 (+1.05%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $14.35

REF analyst rating

BuyConsensus of 9 analysts over the last 12 months. 78% rate it a buy.

Strong buy0
Buy7
Hold1
Underperform1
Sell0

12-month price target · 9 analysts

Average $19.38 (+33.7% upside)

Low: $16.16
Now: $14.50
High: $21.00

Upgrades and downgrades

The latest rating actions, newest first

REF analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
RBC Capital	Sep 11, 2026	Maintains	Outperform	$18.00	63%
Guggenheim	Sep 11, 2026	Maintains	Buy	$20.00	59%
William Blair	Aug 24, 2026	Initiates	Outperform	—	40%
Telsey Advisory Group	Aug 24, 2026	Initiates	Underperform	$20.00	47%
Citigroup	Aug 24, 2026	Initiates	Buy	$20.00	53%
JP Morgan	Aug 24, 2026	Initiates	Overweight	$21.00	57%
Guggenheim	Aug 24, 2026	Initiates	Buy	$20.00	59%
BTIG	Aug 24, 2026	Initiates	Buy	$20.00	51%
Morgan Stanley	Aug 24, 2026	Initiates	Equal-Weight	$16.00	56%
RBC Capital	Aug 24, 2026	Initiates	Outperform	$18.00	63%

The case for and against

Updated Oct 14, 2026

Bull case

Reformation is supported by a powerful combination of industry-leading growth, improving profitability, and a scalable customer flywheel, with 2Q sales up 24.1% to $155.2mn and adjusted EBITDA up 53.9% to $25.4mn. Its gross margin expanded 225bps year over year to 66.7%, while DTC, wholesale, and international revenue rose 21.2%, 48.7%, and 36.8%, respectively, reinforcing broad-based demand and brand strength. Management also guided FY26 sales to $602mn-$606mn and adjusted EBITDA margin to 14.0%-14.2%, suggesting durable momentum, strong customer retention, and meaningful runway from store expansion, especially in the United States.

Bear case

Reformation is viewed negatively because weaker consumer spending could slow Active Customer growth and DTC net revenue per customer, while intensified competition may force promotions and pressure full-price sell-through. Its growth story also carries execution risk, including store rollout, international expansion, and customer retention, even as the company still faces a newly public-company discount and a projected 9.0x EV/EBITDA in the downside case. Margin recovery remains vulnerable to tariff headwinds of about 365 bps in 2025 and roughly 200 bps in 2026, alongside supplier concentration, internal control weaknesses, and Permira overhang risk.

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