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On Monday, Citi analysts adjusted their outlook on Ralph Lauren shares (NYSE:RL), increasing the price target to $250 from the previous $219 while maintaining a Neutral rating. The adjustment follows expectations of a stronger fourth-quarter earnings per share (EPS) above both consensus and the company’s own guidance. According to InvestingPro data, Ralph Lauren has demonstrated impressive strength with a 51% return over the past year, while analyst targets now range from $165 to $342 per share.
Ralph Lauren is anticipated to report an EPS of $2.09, surpassing the consensus estimate of $2.02 and the company’s guidance range of $1.85 to $1.95. Citi’s analysis projects sales growth of 6.3%, which is notably higher than the consensus of 4.9% and Ralph Lauren’s guidance of 3-5%. This optimistic forecast is supported by the company’s robust momentum and demonstrated ability to set prices effectively despite broader economic uncertainties. The company maintains an impressive 68% gross profit margin and strong financial health, as indicated by InvestingPro’s comprehensive analysis, which includes 12 additional key insights available to subscribers.
Moreover, Citi expects Ralph Lauren to provide future guidance, estimating a range of $13.30 to $13.40, closely aligned with the Factset consensus of $13.31. The market anticipates guidance that aligns with these expectations, particularly as Ralph Lauren’s stock performance has been strong, showing a 5% increase since Liberation Day, compared to a median decrease of 5% among peer group stocks.
The strength in Ralph Lauren’s performance is also attributed to solid quarter-to-date results in April, bolstered by the shift of Easter into the first quarter, as indicated by Placer traffic data. While market expectations are high, Citi believes that Ralph Lauren’s management will continue to express optimism about the business’s prospects, even as they exercise caution in light of the uncertain macroeconomic environment.
In other recent news, Ralph Lauren has been the focus of several analyst upgrades and executive compensation adjustments. CFRA analyst Zachary Warring upgraded Ralph Lauren’s stock rating from Sell to Hold, citing improvements in operating margin and valuation. Similarly, Wells Fargo (NYSE:WFC) analyst Ike Boruchow elevated the stock rating to Overweight, highlighting Ralph Lauren’s strong brand metrics and global reach as factors in this decision. UBS analysts maintained a Buy rating with a price target of $348, expressing optimism about positive earnings per share surprises and market share growth. Needham analysts also issued a Buy rating with a $310 price target, emphasizing Ralph Lauren’s strategy to enhance its brand prestige and improve profit margins.
In corporate developments, Ralph Lauren Corporation announced changes to the compensation arrangement for executive Halide Alagoz, setting her annual base salary at a minimum of $1 million and her annual stock award target at $2 million starting from fiscal year 2026. This adjustment aims to align executive interests with those of shareholders. These recent developments underscore Ralph Lauren’s ongoing efforts to navigate market challenges and bolster its financial performance.
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