At first blush, PVH Corp (NYSE:PVH) might seem to be in the same leaky boat that a lot of other apparel makers are in these days. Inflation-pressed consumers with little disposable income mean few chances to sell new clothes. However, PVH got a little extra life in it today after UBS declared it a top stock for 2023.
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PVH, which includes famous brands like Calvin Klein and Tommy Hilfiger, was declared one of the best moves for 2023 by UBS analyst Jay Sole and his team. That was enough to take it up 3.3% in trading on Thursday.
Sole noted that the market was simply too focused on the macro picture right now, as well as currency issues, to appreciate PVH’s true potential.
Moreover, Sole noted that the company’s “PVH+ Plan” was likely to prove successful. Sufficiently so, in fact, to boost earnings performance beyond that of similar firms in the market.
With the PVH+ Plan, PVH can effectively move its major name brands into direct-to-consumer brands. It can ultimately bypass even the wholesale channel, cutting out a lot of middleman effort and seeing that revenue come back into its own coffers. Assuming, of course, it works.
That’s not necessarily a foregone conclusion. Currently, 11 other analysts have positions on PVH, and the consensus considers it only a Moderate Buy. Twice as many analysts call PVH a Hold as they do a Buy. However, the company does have 3.65% upside potential by virtue of its average price target, $78 per share.
