BofA update shows where active managers are putting money
Investing.com - UBS raised its price target on Ralph Lauren (NYSE:RL) to $404.00 from $385.00 on Friday, while maintaining a Buy rating on the luxury apparel company’s shares. The stock, which has delivered an impressive 77.92% return over the past year and commands a market capitalization of $17.16 billion, continues to attract positive analyst attention.
The investment firm cited potential earnings per share (EPS) surprises that could drive upward revisions to sell-side estimates and price-to-earnings (P/E) expansion as reasons for the higher target. InvestingPro data reveals that 9 analysts have already revised their earnings estimates upward for the upcoming period, with the company maintaining impressive gross profit margins of 68.55%.
UBS believes Ralph Lauren’s first-quarter fiscal 2026 report strengthens its conviction that the company will outperform over the next twelve months, as the market better appreciates transformational changes to the brand’s image, distribution model, and cost structure.
The firm also pointed to several upcoming catalysts, including Ralph Lauren’s Investor Day scheduled for September, which could further boost the stock.
UBS considers Ralph Lauren shares inexpensive at approximately 18 times fiscal year 2 estimated EPS, based on its projected 5-year EPS compound annual growth rate of about 9%, and sees a favorable upside/downside skew for investors.
In other recent news, Ralph Lauren Corp. reported strong financial results for the first quarter of fiscal 2026, surpassing analysts’ expectations. The company achieved earnings per share of $3.52, exceeding the forecast of $3.45. Revenue also beat projections, reaching 1.7 billion USD compared to the anticipated 1.65 billion USD. Despite these positive results, Ralph Lauren’s stock experienced a decline in pre-market trading, which suggests investor concerns about future challenges. Analysts have noted these developments, but specific upgrades or downgrades were not mentioned in the available reports. These results highlight the company’s current financial performance, providing important insights for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.