PVH Corp. price target lowered to $93 from $106 at BMO Capital

BMO Capital analyst Simeon Siegel lowered the firm’s price target on PVH Corp. (PVH) to $93 from $106 and keeps a Market Perform rating on the shares. The company’s Q4 EPS beat was driven by a better-than-expected top-line and SG&A, though as-guided, gross margins contracted about 200bps, reflecting increased promos, unfavorable channel mix and higher freight, the analyst tells investors in a research note. PVH deserves much credit for what it achieved with Calvin Klein and Tommy Hilfiger, growing them into two of the largest brands in history, but BMO believes that CK has reached a revenue peak and could benefit from a greater focus on profits versus sales, the firm adds.