Reformation Inc.

J.P. Morgan analysts issued Buy ratings on two stocks outside the market's usual favorites, sustainable womenswear brand Reformation and construction materials supplier Martin Marietta Materials. Analyst Matthew Boss rates Reformation Overweight with a $21 price target, implying a 60% one-year gain, citing mid-to-high-teens revenue growth, a 90% direct-to-consumer revenue mix, and gross margins above 60%. Reformation, which went public on July 30 at $15 per share and raised $210.9 million in gross proceeds, reported fiscal 2Q26 revenue of $155.2 million, up 24.1% year-over-year, and EPS of $0.23, and guided full fiscal 2026 net revenue to $602 million to $606 million. Analyst Adrian Huerta rates Martin Marietta Overweight with a $680 price target, a 35% gain, after the company completed its $13.5 billion acquisition of Lhoist North America, funded with $7 billion in cash and $6.5 billion in stock. Huerta expects $85 million in cost synergies by year two and $100 million to $175 million in commercial EBITDA upside, noting the lime business will be roughly 23% to 25% of Martin Marietta's operations. Martin Marietta reported 2Q26 revenue of more than $1.9 billion, up 21% and a company record, with adjusted earnings per diluted share from continuing operations of $5.

Reformation Inc. forecast full-year 2026 net revenue of $602 million to $606 million, representing roughly 18.6% to 19.5% growth, on its first earnings call as a public company. The retailer said it expects to open 9 to 10 stores in the second half, for a total of 15 to 16 openings in 2026 including the reopening of its Palisades store, bringing year-end store count to 79 to 80 from 70 at the end of the second quarter. For fiscal 2026, Reformation guided to an adjusted EBITDA margin of 14% to 14.2% and capital expenditures of approximately $23 million to $27 million, or roughly 4% of sales, primarily for new store openings. In the second quarter, net revenue rose 24.1% to $155.2 million, with direct-to-consumer revenue up 21.2% to $135.3 million and wholesale and other revenue up 48.7% to $19.9 million; gross margin was 66.7% versus 64.4% a year earlier, and net income grew to $12.4 million from $6.9 million. Chief Financial Officer Joshua Moore said third-quarter net revenue is currently expected to be higher than the fourth quarter, and flagged elevated costs ahead from share-based compensation, public-company expenses and shipping fuel surcharges.