REV Group (REVG) Stock Forecast & Price Target

REV Group Inc. has demonstrated robust performance in its first fiscal quarter of 2024, achieving an adjusted EBITDA of $58.9 million, surpassing both estimates and consensus expectations. The company's management has positively revised its 2025 revenue outlook to between $2.35 billion and $2.45 billion, along with a higher adjusted EBITDA forecast of $200 million to $220 million. Additionally, the strategic buyback of $88 million in shares, combined with minimal leverage and increased capital expenditure guidance for growth investments, positions REV Group favorably for sustained operational efficiency and profitability well into the future.

REV Group's negative outlook is driven by concerns over potential regulatory and warranty expenses that may exceed expectations, which could adversely impact earnings. Additionally, adverse supply chain conditions and uncertainties surrounding government funding levels pose significant risks to sales performance and overall financial stability. Furthermore, declining consumer sentiment and rising interest rates could hinder financing options for recreational vehicle purchases, further complicating the company's earnings prospects.