Cautious Hold Rating for Ralph Lauren Amid U.S. Market Pressures and Strategic Adjustments

Citi analyst Paul Lejuez maintained a Hold rating on Ralph Lauren (RL – Research Report) yesterday and set a price target of $295.00.

Paul Lejuez has given his Hold rating due to a combination of factors influencing Ralph Lauren’s current market position. Despite the brand’s strong global resonance and management’s successful efforts to elevate the brand through reduced promotions and improved marketing, there are anticipated pressures in the U.S. market for the second half of fiscal year 2026. Management’s guidance reflects a conservative outlook, assuming a decrease in North American sales, although no slowdown has been observed in recent trends.
Moreover, while the company is expected to manage tariff-related costs and potential foreign exchange tailwinds, the overall risk/reward scenario is viewed as only slightly favorable with the stock trading at 12 times the estimated EBITDA for fiscal year 2026. The guidance also assumes flat gross margins despite potential tariff increases, which management plans to offset through strategic vendor collaborations and pricing adjustments. These elements contribute to a cautious stance, justifying the Hold rating as the market navigates these uncertainties.

According to TipRanks, Lejuez is a 5-star analyst with an average return of 9.0% and a 57.00% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Abercrombie Fitch, American Eagle, and Kohl’s.