Reformation (NYSE:REF) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised its Reformation price target to $21 from $18 and maintained an “outperform” rating, implying 18.18% upside from the prior close. Analysts’ average rating is “Moderate Buy,” with an average target of $19.75.
• Q3 revenue climbed 19.1% year over year to $173.6 million, beating estimates, and Reformation raised its fiscal 2026 revenue-growth outlook to about 20%.
• The company reported a quarterly loss of $0.02 per share, missing expectations for earnings of $0.02; it cited an unusually high tax rate related to stock-based compensation following its IPO.

Reformation (NYSE:REF - Get Free Report) had its price objective hoisted by Royal Bank Of Canada from $18.00 to $21.00 in a research note issued on Friday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target points to a potential upside of 18.18% from the stock's previous close.

Several other research firms also recently commented on REF. Telsey Advisory Group assumed coverage on Reformation in a report on Monday, August 24th. They set an "outperform" rating and a $20.00 price objective for the company. Citigroup began coverage on shares of Reformation in a research report on Monday, August 24th. They issued a "buy" rating and a $20.00 price target for the company. Zacks Research upgraded shares of Reformation to a "hold" rating in a research note on Tuesday, August 25th. Robert W. Baird began coverage on shares of Reformation in a report on Monday, August 24th. They set an "outperform" rating and a $19.00 price objective on the stock. Finally, JPMorgan Chase & Co. started coverage on shares of Reformation in a report on Monday, August 24th. They set an "overweight" rating and a $21.00 price objective on the stock. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $19.75.

Reformation Price Performance

Shares of REF stock traded up $0.92 on Friday, reaching $17.77. 446,848 shares of the company were exchanged, compared to its average volume of 499,447. The stock has a market capitalization of $1.05 billion and a P/E ratio of -1,777.00. The firm has a 50-day simple moving average of $14.31. The company has a current ratio of 1.58, a quick ratio of 0.96 and a debt-to-equity ratio of 0.64. Reformation has a one year low of $11.85 and a one year high of $18.44.

Reformation (NYSE:REF - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.04). The company had revenue of $173.57 million during the quarter, compared to analyst estimates of $170.48 million. Reformation's revenue for the quarter was up 19.1% compared to the same quarter last year. As a group, sell-side analysts predict that Reformation will post 0.17 EPS for the current year.

Insider Buying and Selling at Reformation

In other Reformation news, Director Yael Aflalo sold 60,298 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total transaction of $841,157.10. Following the transaction, the director directly owned 11,665,505 shares in the company, valued at approximately $162,733,794.75. This trade represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Scsp Refo sold 149,596 shares of Reformation stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total transaction of $2,086,864.20. Following the transaction, the insider directly owned 28,942,153 shares in the company, valued at $403,743,034.35. This represents a 0.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Reformation News Summary

Here are the key news stories impacting Reformation this week:

• Positive Sentiment: Q3 net revenue rose 19.1% year over year to $173.6 million, beating analysts’ $170.5 million estimate. Active customers increased 23%, and gross margin expanded about 252 basis points to 60.4%. Adjusted EBITDA grew 64.2% to $23.1 million. Reformation Q3 results
• Positive Sentiment: The company raised its fiscal 2026 revenue-growth outlook to about 20% and expects adjusted EBITDA margin near 14.2%, the high end of its previous guidance. Management said Q3 marked its 22nd consecutive quarter of double-digit revenue growth. Outlook and sales growth
• Positive Sentiment: BTIG Research raised its price target to $21 from $20 and maintained a Buy rating, signaling continued analyst optimism. BTIG price-target update
• Negative Sentiment: Reformation posted a loss of $0.02 per share, missing the consensus estimate of $0.02 earnings. The company attributed its reported net loss partly to an unusually high tax rate related to stock-based compensation following its IPO; this tempers the otherwise strong operating results. Quarterly earnings report

About Reformation

Reformation is a fashion company that designs and sells women's clothing, footwear, accessories and related products. Its assortment includes dresses, tops, denim, knitwear, outerwear, shoes, handbags and wedding apparel, with products offered through its direct-to-consumer website and retail stores.

Founded in 2009 by Yael Aflalo, Reformation built its brand around combining contemporary style with sustainability-focused production practices. The company has emphasized the use of lower-impact materials, reuse of vintage garments and deadstock fabrics, and efforts to reduce the environmental impact of its operations and supply chain.

Reformation serves customers in the United States and internationally through its online platform and a network of retail locations.

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