In a report released today, Tom Nikic from Needham maintained a Buy rating on PVH (PVH – Research Report), with a price target of $115.00.
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Tom Nikic has given his Buy rating due to a combination of factors that suggest a favorable medium-term risk/reward profile for PVH. Despite the company’s decision to lower its guidance, which might exert some selling pressure on the stock, the shares were already trading at a relatively low valuation. This suggests that the market had largely anticipated the downward revision, making the stock appear attractively priced.
Furthermore, while the Q1 earnings per share slightly exceeded expectations, the overall revenue growth was better than anticipated, particularly driven by strong performance in the Americas. Although there were some margin pressures, the potential for future earnings per share growth through initiatives like GIII license takebacks and cost efficiencies remains underappreciated. These factors contribute to a positive outlook for PVH, justifying the Buy rating despite short-term challenges.
In another report released today, Jefferies also upgraded the stock to a Buy with a $105.00 price target.