Analyst Tom Nikic of Needham maintained a Buy rating on PVH, retaining the price target of $100.00.
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Tom Nikic has given his Buy rating due to a combination of factors that suggest potential for PVH’s stock to appreciate. Despite the company’s Q2 performance exceeding expectations, the stock has not been rewarded, largely because the full-year guidance remains unchanged, even with a favorable foreign exchange impact. This situation presents an opportunity, as the stock appears undervalued, trading at a low multiple of its estimated future earnings.
Furthermore, PVH’s revenue growth for the quarter was consistent with expectations, and its earnings per share significantly surpassed guidance. Although the company anticipates a slight revenue decline in the upcoming quarter, the overall fundamentals suggest that the stock is unjustly cheap. If PVH can improve its fundamentals, there is a significant opportunity for the stock to be re-rated, justifying the Buy rating.
In another report released today, Telsey Advisory also maintained a Buy rating on the stock with a $90.00 price target.