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Investing.com - Needham raised its price target on Ralph Lauren (NYSE:RL) to $335.00 from $310.00 on Tuesday, while maintaining a Buy rating on the luxury apparel retailer’s stock. According to InvestingPro data, the company, currently valued at $18.21 billion, is trading near its 52-week high of $306.34, with an impressive YTD return of 32.74%.
The firm cited Ralph Lauren’s strong year-to-date performance, with shares up approximately 30% compared to the S&P 500’s 8% gain, and expressed confidence the stock will continue its momentum following the company’s first-quarter results scheduled for August 7.
Needham believes Ralph Lauren’s brand-elevation strategy is resonating with consumers, while the company remains well-insulated from macroeconomic headwinds affecting other brands due to its diversified supply chain, distribution profiles, high product margins, and high-end consumer base. The company’s robust gross profit margin of 68.55% supports this assessment, though InvestingPro data indicates the stock is currently trading above its Fair Value.
The research firm also noted that management’s "reverse hockey stick" guidance—which forecasts high-single-digit revenue growth for the first quarter but only low-single-digit growth for the full fiscal year—creates opportunities for Ralph Lauren to exceed expectations and raise guidance throughout the year.
Needham raised its fiscal 2026 and 2027 earnings per share forecasts primarily to account for foreign exchange movements since Ralph Lauren’s fourth-quarter earnings report, with new estimates of $13.75 and $15.66, respectively, compared to previous forecasts of $13.55 and $15.48.
In other recent news, Ralph Lauren Corporation held its annual meeting of stockholders, where shareholders elected all nominated directors to serve until the 2026 annual meeting. In addition to governance updates, several investment firms have adjusted their outlook on Ralph Lauren’s stock. Telsey Advisory Group raised its price target to $335, maintaining an Outperform rating, citing the company’s brand elevation strategy and global presence as key drivers of momentum. UBS also increased its price target to $385, highlighting solid first-quarter fundamentals and predicting an earnings per share beat of approximately 15 cents. Meanwhile, JPMorgan reiterated its $355 price target and Overweight rating, noting no signs of underlying softening across the business. These developments reflect a positive sentiment among analysts regarding Ralph Lauren’s current operational strategies and market position.
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