Stifel analyst Jim Duffy upgraded Kontoor Brands to Buy from Hold with a price target of $63, up from $44, after its Q4 earnings beat and above-consensus guidance for FY23. The analyst attributes the firm’s more "constructive" view to evidence of standout brand momentum, market share gains in both core denim and non-denim styles, and gross margin opportunities in the second half of this year and into 2024. The firm further notes that given the low relative valuation relative to Kontoor comp set and visibility to strong free cash flow in 2023, the risk/reward on the stock is "favorable".
Published first on TheFly
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