John Kernan, an analyst from TD Cowen, maintained the Buy rating on Ralph Lauren (RL – Research Report). The associated price target was raised to $310.00.
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John Kernan has given his Buy rating due to a combination of factors influencing Ralph Lauren’s positive trajectory. The company’s recent performance, with a 12% increase in same-store sales on top of a 9% rise the previous year, highlights its strong product and merchandising strategy, effective marketing, and the global elevation of the brand. Furthermore, the shift towards a direct-to-consumer model continues to provide significant benefits, contributing to the company’s robust free cash flow and return on invested capital.
Ralph Lauren’s strategic initiatives, including city activations in key locations like Paris and London and experiential marketing, are driving increased traffic and sales. The brand’s focus on maintaining high-quality sales, as evidenced by a record gross margin, and its successful execution in core markets such as Europe and Asia, supports its growth outlook. Innovations in AI for buying and allocation, along with strong performance in high-potential categories, further bolster the company’s prospects, making it a compelling investment opportunity according to Kernan.
In another report released yesterday, Telsey Advisory also reiterated a Buy rating on the stock with a $315.00 price target.