Kontoor Brands stock rating reaffirmed at Hold by Stifel amid leadership changes

Investing.com - Stifel maintained its Hold rating and $72.00 price target on Kontoor Brands (NYSE:KTB) following the company’s announcement of leadership changes. The stock, currently trading at $60.33, has declined over 35% in the past six months, though InvestingPro analysis suggests the company remains undervalued with strong fundamentals, including a perfect Piotroski Score of 9.

Kontoor Brands revealed that Jenni Broyles will take on the role of Chief Commercial Officer while retaining her current responsibilities as Global Head of Brands. Joseph Alkire will expand his duties to include supply chain operations as CFO and Global Head of Operations.

Both executives will continue to report directly to Chairman and CEO Scott Baxter (NYSE:BAX), according to the announcement. The company also disclosed that Tom Waldron, Executive Vice President and Chief Operating Officer, will leave Kontoor Brands on September 30 after more than six years in the position.

Stifel views the expanded responsibilities for high-performing leaders as a "natural progression" as the company faces increased global complexity related to the Helly Hansen deal.

The firm remains cautious about cost visibility from tariffs and "lackluster Lee trends" in maintaining its Hold recommendation on the apparel company’s stock.

In other recent news, Kontoor Brands has announced significant leadership changes, with Jenni Broyles and Joseph Alkire taking on expanded roles within the company’s Executive Leadership Team. Broyles has been appointed as Executive Vice President, Chief Commercial Officer & Global Head of Brands, while Alkire will serve as Executive Vice President, Chief Financial Officer & Global Head of Operations. Additionally, Kontoor Brands has entered into a new footwear licensing agreement with Genesco (NYSE:GCO), allowing the latter to design, source, and market footwear under the Wrangler brand, with an initial collection expected in Fall 2026.

On the financial front, Wells Fargo (NYSE:WFC) has reiterated its Overweight rating on Kontoor Brands, maintaining a price target of $90.00. However, the firm anticipates a reduction in the company’s full-year earnings guidance due to tariff challenges. Meanwhile, Goldman Sachs has reinstated coverage on Kontoor Brands with a Buy rating and an $85.00 price target, highlighting the recent acquisition of the Helly Hansen brand as a strategic move to diversify and expand into global markets.

Stifel analysts have maintained a Hold rating on Kontoor Brands, with a $72 price target, following the Helly Hansen acquisition. This acquisition is expected to diversify Kontoor Brands’ portfolio and enhance its presence in higher-growth markets, particularly in the outdoor sector. These developments reflect a period of strategic adjustments and partnerships for Kontoor Brands, aiming to strengthen its market position and growth potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.