CFRA upgrades Ralph Lauren stock to Hold on improved fundamentals

Published 11/08/2025, 19:00
© Reuters.

Investing.com - CFRA has upgraded Ralph Lauren (NYSE:RL) from Sell to Hold and raised its price target to $250.00 from $219.00, citing improved fundamentals and growth prospects. According to InvestingPro data, the company has seen 10 analysts revise their earnings estimates upward, with the stock delivering an impressive 80.4% return over the past year.

The research firm increased its fiscal year 2026 and 2027 earnings per share estimates to $13.75 and $14.00, respectively, representing increases of $1.25 and $1.00 from previous forecasts.

Ralph Lauren reported first-quarter normalized earnings per share of $3.77, exceeding consensus estimates by $0.27, while revenue reached $1.72 billion, surpassing expectations by $63 million.

The company showed strong regional performance with North America revenues increasing 8% to $656 million, Europe revenue rising 16% to $555 million, and Asia sales growing 21% to $474 million.

Ralph Lauren’s adjusted gross margin expanded 180 basis points year-over-year to 72.3%, which CFRA attributed to average unit retail growth, favorable channel and geographic mix, and lower cotton costs.

In other recent news, Ralph Lauren Corp. reported stronger-than-expected financial results for the first quarter of fiscal 2026. The company achieved an earnings per share (EPS) of $3.52, surpassing analysts’ forecast of $3.45. Additionally, revenue reached $1.7 billion, exceeding the anticipated $1.65 billion. Despite these robust figures, the company’s stock experienced a decline in pre-market trading, indicating investor concerns about potential future challenges. In another development, UBS raised its price target for Ralph Lauren to $404 from $385, maintaining a Buy rating on the company’s shares. UBS highlighted potential EPS surprises and price-to-earnings expansion as reasons for the higher target. These recent developments provide investors with insights into Ralph Lauren’s current financial health and market expectations.

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