Wells Fargo analyst Ike Boruchow maintained a Buy rating on Kontoor Brands today and set a price target of $90.00.
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Ike Boruchow has given his Buy rating due to a combination of factors that suggest a positive outlook for Kontoor Brands despite some challenges. The company is expected to experience solid organic growth, particularly driven by its Wrangler and Jeanius brands, which could provide a significant upside in the second quarter. Although there are material tariff headwinds that could impact the full-year earnings per share (EPS), Kontoor Brands is actively working on mitigating these challenges.
The management is confident in offsetting the tariff exposure within the next 12 to 18 months, aided by favorable developments in China. Additionally, new synergies from the recently completed HH deal and potential upside in the second quarter are expected to counterbalance the negative impacts. Overall, while the official EPS guidance may be adjusted slightly downward, the long-term prospects, including organic momentum and synergies, support a strong earnings potential in the coming years, justifying the Buy rating.
According to TipRanks, Boruchow is a 4-star analyst with an average return of 5.5% and a 47.98% success rate. Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Nike, Victoria’s Secret, and Tapestry.
In another report released on July 1, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $85.00 price target.