In a report released today, Simeon Siegel from BMO Capital maintained a Hold rating on PVH (PVH – Research Report), with a price target of $84.00.
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Simeon Siegel has given his Hold rating due to a combination of factors impacting PVH’s financial performance. Despite reporting an earnings per share (EPS) beat, PVH’s gross margin contracted more than expected, reflecting increased promotions, an unfavorable channel mix, and higher freight costs. These factors placed the company’s performance near the lower end of its peer group. Additionally, PVH’s management has lowered its full-year EPS guidance significantly, marking the first such reduction in six years and the largest percentage decrease historically tracked for the company.
Furthermore, while sales were above expectations, the growth was slightly below the group average, and inventory levels increased significantly year-over-year. The company’s EBIT margins also declined across various regions, adding to the pressure on overall profitability. Given these challenges and the need for further evidence of the company’s ability to expand profitability, Siegel has opted to maintain a Hold rating on PVH’s stock.
Siegel covers the Consumer Cyclical sector, focusing on stocks such as Capri Holdings, Ulta Beauty, and Burlington Stores. According to TipRanks, Siegel has an average return of 3.2% and a 50.44% success rate on recommended stocks.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $80.00 price target.