JPMorgan has initiated coverage of Reformation Inc. (NYSE: REF) with an Overweight rating and a price target of $21.00, implying approximately 45% upside from the stock’s closing price of $14.48 on August 21.
The New York-based sustainable fashion retailer, which went public in May at $15.00 per share, reported revenue of about $500 million while maintaining profitability. Reformation’s direct-to-consumer segment accounts for 90% of revenue, with a product development cycle as short as 30 days and new launches occurring roughly twice weekly. The company’s gross margin has averaged 62.37% over the trailing twelve months, supported by a 90% contribution from proven performance pieces to its apparel net revenues.
Analyst Matthew Boss highlighted Reformation’s mid-to-high double-digit revenue growth potential over the next three to five years, alongside an estimated 300 basis point margin expansion. Historical revenue growth reached 34% between fiscal 2015 and 2025 projections, with 19% growth recorded over the trailing twelve months. Full-price sell-through rates have consistently hovered around 80% annually over the past five years.
JPMorgan’s rating follows similar initiations from RBC Capital and Baird, which assigned Outperform ratings with price targets of $18.00 and $19.00, respectively. Morgan Stanley initiated coverage with an Equalweight rating and a $16.00 price target.
