UBS analyst Jay Sole has reiterated their bullish stance on PVH stock, giving a Buy rating on December 8.
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Jay Sole’s rating is based on PVH’s robust brand strength, strategic direction, and solid financial position, which he believes will drive significant earnings growth in the long term. He projects a double-digit percentage increase in earnings per share (EPS) after fiscal year 2025, suggesting that as PVH’s sales and earnings recover, the stock’s price-to-earnings ratio will improve as the market recognizes the potential for future growth. Sole’s confidence in this outlook is bolstered by discussions with PVH’s management, reinforcing his belief in the company’s strategic path.
Since Stefan Larsson took over as CEO in 2021, PVH has been modernizing and standardizing its global operations, which includes revamping product and marketing strategies and enhancing consumer experiences across all regions and brands. The company has also overhauled its supply chain to be more responsive to demand. While PVH has made progress, Sole believes there is still room for operational improvements. He anticipates that as PVH gains more experience with its new operating model, its execution will improve, leading to strong EPS growth. Despite investor concerns about the timing of this growth, Sole is confident that the company’s steadfast commitment to its plan will eventually lead to a significant increase in stock price, making it a worthwhile investment.
In another report released on December 8, Evercore ISI also assigned a Buy rating to the stock with a $95.00 price target.