Ralph Lauren stock price target raised to $345 from $320 at Wells Fargo

Published 08/09/2025, 11:12
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Investing.com - Wells Fargo raised its price target on Ralph Lauren (NYSE:RL) to $345 from $320 on Monday, while maintaining an Overweight rating on the luxury apparel company’s stock. The stock has shown remarkable momentum, delivering an 83.2% return over the past year and currently trading near its 52-week high of $321.77.

The firm expects Ralph Lauren to deliver mid-single-digit top-line growth, with stronger performance coming from international markets rather than domestic sales. The company has already demonstrated solid growth with a 9.61% revenue increase in the last twelve months. According to InvestingPro, 15 analysts have recently revised their earnings expectations upward for the upcoming period.

Wells Fargo anticipates the company will focus less on gross margins compared to its previous analyst day, instead striking a better balance between average unit retail price, gross margin, and cost leverage.

The bank projects a three-year algorithm consisting of mid-single-digit revenue compound annual growth rate and annual margin expansion of 50-100 basis points, noting that fiscal year 2026 is already tracking ahead of these targets.

Based on these assumptions, Wells Fargo estimates Ralph Lauren’s fiscal year 2028 earnings per share could reach approximately $19.50, significantly above the current Street consensus of around $18.00, with the new price target based on 22 times the firm’s fiscal year 2027 EPS estimate.

In other recent news, Ralph Lauren Corp. reported impressive financial results for the first quarter of fiscal 2026, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $3.52, which was higher than the anticipated $3.45, and revenue amounted to $1.7 billion, exceeding the forecasted $1.65 billion. Despite this strong performance, investor concerns led to a decline in the company’s stock during pre-market trading. Additionally, CFRA has upgraded Ralph Lauren from Sell to Hold, raising its price target to $250.00, highlighting improved fundamentals and growth prospects. The firm also increased its fiscal year 2026 and 2027 EPS estimates to $13.75 and $14.00, respectively. UBS has also raised its price target for Ralph Lauren to $404.00, maintaining a Buy rating on the shares. The investment firm mentioned potential EPS surprises and P/E expansion as reasons for the higher target. These developments reflect the ongoing interest and analysis from financial firms regarding Ralph Lauren’s future performance.

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