Analyst Tom Nikic of Needham maintained a Buy rating on Ralph Lauren, retaining the price target of $350.00.
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Tom Nikic has given his Buy rating due to a combination of factors that highlight Ralph Lauren’s strong financial performance and strategic outlook. The company has demonstrated effective execution and remains a high-quality earnings grower, which is evident from their reiterated fiscal year 2026 guidance and newly introduced three-year outlook.
Ralph Lauren plans to achieve a mid-single-digit organic compound annual growth rate in revenue, along with a cumulative expansion of 100-150 basis points in EBIT margin, adjusted for constant foreign exchange rates. Additionally, the company aims to return at least $2 billion to shareholders through dividends and buybacks by fiscal year 2028. This strategy is expected to result in a double-digit earnings per share growth algorithm over the next three years, with projected earnings per share ranging from $17.75 to $19.25 by fiscal year 2028, translating to a 13%-16% compound annual growth rate in EPS. Nikic believes this credible plan will drive the stock’s upward trajectory in line with earnings growth.
In another report released today, Barclays also maintained a Buy rating on the stock with a $353.00 price target.