Bank of America Securities analyst Christopher Nardone reiterated a Buy rating on Ralph Lauren (RL – Research Report) yesterday and set a price target of $318.00.
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Christopher Nardone has given his Buy rating due to a combination of factors, primarily driven by Ralph Lauren’s robust financial performance and positive outlook. The company’s third-quarter results exceeded expectations, with a significant year-over-year increase in comparable sales across all regions. This growth was accompanied by an adjusted EPS that surpassed initial estimates, indicating stronger sales and improved gross margins which helped offset increased SG&A expenses.
Additionally, Nardone highlights the resurgence of the North American wholesale segment, which showed growth for the first time in nearly two years, supported by strategic inventory management and enhanced marketing efforts. Moreover, operating margin expansion is expected to continue, driven by gains in average unit retail prices and reduced cotton costs. The European market, in particular, exhibited strong revenue growth, reinforcing confidence in Ralph Lauren’s ability to sustain its market position and achieve further margin expansion. These factors collectively support the increased price objective and the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $330.00 price target.