Oxford Industries stock price target lowered to $46 by UBS

Investing.com - UBS lowered its price target on Oxford Industries (NYSE:OXM) to $46.00 from $48.00 on Wednesday, while maintaining a Neutral rating on the apparel company’s stock. The stock, which has declined nearly 26% over the past six months, currently trades at an attractive P/E ratio of 8.8x, with InvestingPro analysis indicating the shares are undervalued.

The firm expects Oxford Industries to exceed second-quarter earnings estimates by 2 cents per share, primarily driven by strong performance from its Lilly Pulitzer brand amid challenges across other segments of the business. Notably, the company maintains a remarkable 55-year streak of consecutive dividend payments, currently offering a substantial 6% yield.

UBS anticipates Oxford Industries will reduce its fiscal year 2025 earnings guidance by approximately 25 to 30 cents from the current range of $2.80-$3.20 per share, citing incremental tariff headwinds as the main factor for the adjustment.

The downward revision could lead to modest reductions in the consensus analyst estimate of $2.95 per share, though UBS believes market participants have already factored similar expectations into the stock price.

The options market is pricing in a potential 8.6% move in either direction following Oxford Industries’ earnings report, which exceeds the historical average movement of 6.8%, though UBS expects less volatility than the historical average.

In other recent news, Oxford Industries reported its first-quarter fiscal 2025 earnings, revealing a decline in earnings per share (EPS) compared to forecasts. The company posted an EPS of $1.82, which fell short of the expected $1.98. However, revenue exceeded expectations, coming in at $393 million against a forecast of $383.54 million. Despite this revenue beat, the company is facing ongoing challenges. UBS has lowered its price target for Oxford Industries to $48, citing topline challenges and margin compression that may affect future earnings per share growth. Similarly, Citi reduced its price target to $44, maintaining a Sell rating, following the company’s report of a 5% decline in comparable sales and a 31% drop in earnings per share year-over-year. These developments highlight the pressures Oxford Industries is facing in the current market environment.

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