Reformation (REF) is a growing data-driven business with loyal customers, differentiated brand positioning, and a long visible runway to open more stores, RBC Dominion Securities said in a note Monday.

The investment firm said it expects revenue to grow in the high teens and normalized earnings before interest, taxes, depreciation, and amortization in the mid-20s annually through 2028.

Growth is driven by increasing active customers, supported by a larger store base, higher revenue per customer through category expansion and stronger omnichannel sales, and a modest increase in wholesale, according to the note.

As tariffs ease and the company spreads its fixed costs over a larger business, profitability should improve, with EBITDA potentially reaching about $100 million in 2027, analysts said.

RBC initiated coverage of Reformation with an outperform rating and $18 price target.

Shares of the company were up 1.3% in Monday trading.

Price: 14.67, Change: +0.19, Percent Change: +1.31