Analyst John Kernan of TD Cowen maintained a Buy rating on Ralph Lauren, boosting the price target to $399.00.
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John Kernan has given his Buy rating due to a combination of factors that suggest potential growth and value in Ralph Lauren’s stock. The management’s strategic initiatives, particularly the ‘Next Great Chapter Drive’ plan, indicate a conservative guidance for the upcoming quarters, with potential for upward revisions as the fiscal year progresses. Kernan highlights the company’s strong management team, which was further affirmed during a recent Investor Day and dinner meeting, as a key driver of confidence in the company’s future performance.
Additionally, Ralph Lauren’s positioning in the luxury market, especially in comparison to European peers, offers significant brand momentum and value. The company’s plans for expansion, including opening new stores in North America, EMEA, and APAC, are expected to drive growth. The shift towards international markets is anticipated to enhance average unit retail (AUR) and improve margin mix, contributing to an optimistic outlook for sales and earnings before interest and taxes (EBIT) margins in the coming years.
According to TipRanks, Kernan is a 5-star analyst with an average return of 9.5% and a 54.66% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as Ralph Lauren, Burlington Stores, and Dick’s Sporting Goods.
In another report released on September 26, J.P. Morgan also reiterated a Buy rating on the stock with a $430.00 price target.