Kontoor Brands: Broad-Based Momentum and Margin Expansion Support Premium Valuation and Raised $100 Target

In a report released yesterday, Robert Drbul from BTIG maintained a Buy rating on Kontoor Brands, with a price target of $100.00.

Robert Drbul has given his Buy rating due to a combination of factors, including Kontoor’s strong quarterly performance and improving profitability trends. The company delivered record revenue with double‑digit organic growth, led by Wrangler’s share gains in denim and non‑denim, while gross margin expanded meaningfully on mix and pricing, even as management stepped up brand and demand‑creation investments.

Drbul also highlights broad-based momentum across Wrangler, Lee, and Helly Hansen, the accelerating workwear business, and the fast-growing, high-margin Helly Hansen China joint venture as key long-term growth drivers. With rising earnings forecasts, expected margin expansion, and a valuation he views as deserving of a premium multiple versus history, he lifts his price target to $100 and reiterates a Buy recommendation.

In another report released today, Barclays also maintained a Buy rating on the stock with a $93.00 price target.

KTB’s price has also changed slightly for the past six months – from $79.570 to $78.180, which is a -1.75% drop .