Telsey raises Ralph Lauren stock price target to $335 on brand momentum

Published 04/08/2025, 17:14
© Reuters.

Investing.com - Telsey Advisory Group raised its price target on Ralph Lauren (NYSE:RL) to $335.00 from $315.00 on Monday, while maintaining an Outperform rating on the luxury apparel retailer’s shares. The stock has demonstrated remarkable momentum, delivering an 81.35% return over the past year and currently trading near its 52-week high of $306.34. InvestingPro data reveals the company maintains impressive gross profit margins of 68.55%.

The price target increase reflects Ralph Lauren’s sustained operating momentum as it enters fiscal year 2026, driven by the company’s brand elevation strategy, product innovation efforts, and diversified global presence.

Telsey noted that Ralph Lauren has consistently delivered earnings beats across regions throughout fiscal 2024 and into fiscal 2025, demonstrating resilience in a volatile environment and reflecting the strength of its premium positioning.

The firm highlighted Ralph Lauren’s first quarter fiscal 2026 revenue guidance, which calls for high-single-digit growth in constant currency despite an uncertain macroeconomic backdrop, signaling continued confidence in underlying demand for the brand.

Telsey’s new $335 price target assumes a 21.8x multiple on its two-year forward earnings per share estimate of $15.34, compared to the current next-twelve-months multiple of 20.7x. The stock currently trades at a P/E ratio of 25.34x, which InvestingPro analysis suggests is relatively high compared to its near-term earnings growth potential. Discover comprehensive valuation metrics and 15 additional ProTips with an InvestingPro subscription.

In other recent news, Ralph Lauren has been the focus of several investment firms, which have adjusted their price targets based on the company’s performance and prospects. UBS raised its price target for Ralph Lauren to $385, citing solid first-quarter fundamentals and anticipating an earnings per share beat of approximately 15 cents. Similarly, Telsey Advisory Group increased its price target to $335, reflecting confidence in the company’s brand strength and global presence as it enters fiscal year 2026. Deutsche Bank (ETR:DBKGn) also resumed coverage with a Buy rating and set a price target of $343, emphasizing Ralph Lauren’s strong fundamentals and growth potential.

JPMorgan maintained its $355 price target and Overweight rating, noting no signs of softening in any region or channel of the business. In corporate governance news, Ralph Lauren announced Angela Ahrendts as the new Lead Independent (LON:IOG) Director, succeeding Hubert Joly after his 16 years of service. Ahrendts, who has been on the board since 2018, currently chairs the Finance Committee and serves on other key committees. These developments indicate a positive outlook from analysts and strategic leadership changes at Ralph Lauren.

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