Tom Nikic, an analyst from Needham, reiterated the Buy rating on Ralph Lauren (RL – Research Report). The associated price target is $310.00.
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Tom Nikic has given his Buy rating due to a combination of factors that highlight Ralph Lauren’s strong market position. The company’s diverse business model, which includes both revenue streams and sourcing, along with its impressive gross margins, positions it well against tariff risks. These risks are further mitigated by favorable foreign exchange movements, making Ralph Lauren less vulnerable compared to its peers.
Additionally, Ralph Lauren has consistently demonstrated pricing power, with eight consecutive years of average unit retail price increases. While there are potential risks such as inflation impacting the U.S. outlet business and anti-American sentiment affecting international sales, there is currently no evidence of these risks materializing. Consequently, Tom Nikic expects Ralph Lauren to continue its double-digit earnings per share growth, justifying the bullish outlook on the stock.
In another report released on May 14, Wells Fargo also maintained a Buy rating on the stock with a $275.00 price target.