Street Calls of the Week
Investing.com - UBS raised its price target on Ralph Lauren (NYSE:RL) to $421.00 from $404.00 on Thursday, while maintaining a Buy rating on the luxury fashion retailer’s stock. The stock currently trades at $338.31, having surged 69% over the past year and recently hitting new 52-week highs. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The price target increase comes as UBS’s checks suggest Ralph Lauren’s second-quarter fundamentals were "very solid," according to the investment bank.
UBS forecasts Ralph Lauren will deliver an 18-cent earnings per share beat for the second quarter and expects the company to raise its implied fiscal year 2026 EPS outlook by a similar amount.
The investment bank noted that its conversations with investors suggest the market already expects a similar beat-and-raise type of report, meaning the second-quarter results are unlikely to change market sentiment or the stock’s price-to-earnings ratio.
UBS agrees with the options market view that Ralph Lauren shares could move approximately 5.9% following the earnings report, slightly below the historical average movement of 6.4%.
In other recent news, Ralph Lauren has been the focus of several notable developments. The company has consistently exceeded expectations on both revenue and earnings, leading BTIG to initiate coverage with a Buy rating and a $400 price target, citing strong leadership from CEO Patrice Louvet. TD Cowen also raised its price target for Ralph Lauren to $399, maintaining a Buy rating, following discussions about the company’s "Next Great Chapter ’Drive’ Plan." Telsey Advisory Group increased its price target to $350, maintaining an Outperform rating due to Ralph Lauren’s successful strategic outlook and broad demographic appeal.
In a recent presentation, Ralph Lauren outlined its long-term growth strategy, expecting revenue to grow at a mid-single-digit rate annually through fiscal 2028, with operating margins expanding by 100 to 150 basis points. Additionally, Ralph Lauren announced a quarterly dividend of $0.9125 per share, payable on October 10, 2025. These developments reflect the company’s strategic priorities and financial outlook, garnering attention from various analyst firms.
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