Kontoor Brands stock price target raised to $114 by UBS on Helly Hansen growth

Investing.com - UBS raised its price target on Kontoor Brands (NYSE:KTB) to $114.00 from $99.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently valued at $4.74 billion, has seen its shares surge nearly 50% over the past six months, according to InvestingPro data.

The investment firm cited meaningful growth opportunities for the recently acquired Helly Hansen brand in the premium outdoor space as a key factor behind the increased target.

UBS projects Helly Hansen’s EBIT could reach $117 million by fiscal year 2029, up from approximately $50 million in fiscal year 2025, potentially enhancing Kontoor Brands’ EPS growth by about 400 basis points.

The firm estimates this would translate to a 13% EPS compound annual growth rate through fiscal year 2029, which it believes is underappreciated at the current 14x FY2 price-to-earnings ratio.

UBS expects solid growth and earnings beats over the next twelve months to serve as catalysts for the stock to move toward its new $114 price target.

In other recent news, Kontoor Brands Inc. reported a strong performance for the second quarter of 2025, with earnings per share reaching $1.33, significantly surpassing the expected $0.87. Revenue also exceeded forecasts, totaling $658 million compared to the projected $625.96 million. UBS has raised its price target for Kontoor Brands to $99, citing the company’s strengthening position in the denim category and its potential for long-term growth as it expands into new categories and markets. BTIG initiated coverage of Kontoor Brands with a Buy rating, expressing confidence in the growth prospects of the Wrangler and Helly Hansen brands.

Additionally, Kontoor Brands has entered into a separation agreement with former COO Thomas Waldron, who will remain in a non-executive capacity until September 30, 2025, to assist with the transition of his responsibilities. These developments highlight the company’s ongoing strategic initiatives and market performance.

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