Kontoor Brands: Resilience and Strategic Initiatives Support Buy Rating Amid Challenges

Wells Fargo analyst Ike Boruchow has maintained their bullish stance on KTB stock, giving a Buy rating on February 20.

Ike Boruchow has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Kontoor Brands. Despite a challenging start to 2025, the company demonstrated resilience with a solid fourth-quarter performance, particularly with the strength of the Wrangler brand offsetting weaknesses in Lee. The management’s strategic initiatives, such as Project Jeanius, are expected to yield significant cost savings, contributing positively to the company’s earnings over time.
Moreover, while there are concerns about tariff impacts and consumer slowdown, Kontoor Brands has plans to mitigate these risks through strategic production shifts and pricing adjustments. The anticipated closure of the HH deal in the second quarter is expected to bolster revenues and margins in the latter half of the year. These factors, combined with the company’s proactive approach to managing external pressures, support the Buy rating by suggesting potential for future growth and profitability.

In another report released on February 20, Barclays also maintained a Buy rating on the stock with a $100.00 price target.