TD Cowen analyst John Kernan reiterated a Buy rating on PVH (PVH – Research Report) today and set a price target of $110.00.
John Kernan has given his Buy rating due to a combination of factors that suggest a potential turnaround for PVH. The company has issued initial guidance for FY25E, indicating a return to organic growth and a path towards a mid-teens long-term adjusted operating margin, which contrasts with the sales decline seen in FY24. Despite challenges such as a 7% sales decline in FY24 and a projected 1% revenue decrease in FY25E, there are signs of improvement, particularly in the Fall season, which could bolster the company’s performance.
Additionally, management sees opportunities for reducing SG&A expenses by 200 to 300 basis points, which could positively impact profitability. While there are concerns about the impact of license transitions and geopolitical issues in China, the company’s international operations, which account for a significant portion of EBIT, show potential for recovery. These factors, combined with encouraging sell-through trends in Q3, contribute to Kernan’s optimistic outlook on PVH’s stock.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PVH in relation to earlier this year.