Kontoor Brands upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Brooke Roach upgraded Kontoor Brands to Buy from Neutral with a price target of $56, up from $51. The analyst says the company’s “strong brand momentum” is driving market share gains and that it has an opportunity for better sell-in trends to key wholesale partners, following a year of destocking in the channel. Kontoor also faces “significant” margin tailwinds in the second half of 2023 and 2024, including raw material cost recapture and cycling prior year manufacturing fixed cost deleverage, the analyst tells investors in a research note.