Benzinga - by Chris Katje, Benzinga Staff Writer.
An analyst is out with upgrades on two apparel retail stocks.
Here's a look at the stocks and why they were upgraded.
Goldman Sachs on PVH: Cost savings and a renewed focus on wholesale partnerships could help shares of PVH Corp (NYSE:PVH) into 2024, Goldman Sachs analyst Brooke Roach said.
The analyst upgraded shares from Neutral to Buy and raised the price target from $99 to $126.
"We believe PVH's sequentially improving execution against strategic initiatives set out by the company's PVH+ plan will support a significant improvement in profitability into 2024, even if top-line growth remains lackluster as a result of ongoing macro pressures," Roach said.
The analyst said PVH, which is home to brands such as Tommy Hilfiger and Calvin Klein, could improve its margins going forward and improvements made on inventory could help with promotional control.
Roach's upgrade comes as PVH shares are hitting new 52-week highs this week.
"We recognize the stock has outperformed significantly in recent months, including the last week. We believe that margin tailwinds are still underappreciated and see significant upside to consensus estimates into 2024/2025.
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Goldman Sachs on Ralph Lauren: Benefits in the supply chain and margins could also help shares of Ralph Lauren Corp (NYSE:RL), Roach said.
The analyst upgraded shares of Ralph Lauren from Sell to Neutral and raised the price target from $107 to $132.
"The Ralph Lauren brand has been consistently stronger than our expectations despite a strained operating environment, and the company's AUR growth strategy has helped to offset pressures in unit growth particularly in North America," Roach said.
The analyst said there could be earnings per share growth ahead with margin recaptured and commodity costs improving.
"We expect modest growth for the brand in aggregate as the company increasingly cycles select wholesale pressure, with revenue improvement supported by healthy inventory levels."
Read Next: How To Earn $500 A Month From Ralph Lauren Stock Following Upbeat Earnings
Latest Ratings for PVH
| Mar 2022 | Wedbush | Downgrades | Outperform | Neutral |
| Dec 2021 | Truist Securities | Initiates Coverage On | Hold | |
| Dec 2021 | Morgan Stanley | Maintains | Overweight |
View the Latest Analyst Ratings
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