BMO Capital analyst Simeon Siegel lowered the firm’s price target on PVH Corp. (PVH) to $84 from $93 and keeps a Market Perform rating on the shares. The company reported a Q1 earnings beat, but its gross margins contracted 285bps amid increased promotional activity, unfavorable channel mix, and higher freight costs, the analyst tells investors in a research note. BMO adds that the Calvin Klein line has reached a revenue peak and could benefit from a greater focus on profits vs. sales.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PVH:
- PVH Faces Profitability Challenges Amid EPS Beat and Margin Contraction, Analyst Maintains Hold Rating
- PVH Corp. price target lowered to $80 from $100 at Wells Fargo
- Hold Rating on PVH Amid Margin Pressures and Mixed Regional Performance
- Closing Bell Movers: MongoDB jumps 14% on earnings beat and raise
- Positive Medium-Term Outlook for PVH Despite Short-Term Challenges Justifies Buy Rating