Kontoor Brands reinstated with a Buy at Goldman Sachs

Goldman Sachs analyst Brooke Roach reinstated coverage of Kontoor Brands (KTB) with a Buy rating and $85 price target implying 25% upside. The company recently completed the acquisition of the Helly Hansen brand, which diversifies and strengthens Kontoor’s portfolio expansion into global markets and new categories, and provides meaningful accretion opportunity over time, the analyst tells investors in a research note. The firm sees an attractive risk/reward for the shares as a result of “healthy” underlying trends in the base business, “significant growth optionality” as Kontoor integrates the Helly Hansen brand, and the company’s relatively attractive positioning as a result of current tariff policy.