Citi analyst Paul Lejuez lowered the firm’s price target on PVH Corp. (PVH) to $68 from $83 and keeps a Neutral rating on the shares. Under the new tariff plan as currently outlined, apparel companies “will be hard hit,” the analyst tells investors in a research note. The firm says that with most product sourced in Asia, product costs will increase significantly. Citi does not believe the companies have enough pricing power to offset these higher costs. And for those that try to raise prices to offset cost increases, this will result in weaker demand, contends the firm. Citi lowered estimates and targets across the sector.
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