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Investing.com - Telsey Advisory Group raised its price target on Ralph Lauren (NYSE:RL) to $350 from $335 while maintaining an Outperform rating on the stock. The new target comes as the stock trades near its 52-week high, having delivered an impressive 73% return over the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The firm cited Ralph Lauren’s successful strategic outlook, noting the company is "operating from a position of offense" as the brand appeals to a broad demographic with a strengthening value perception.
Telsey highlighted the brand’s representation of a "timeless, elevated, and inclusive lifestyle" that provides a strong foundation for pursuing high-potential, under-penetrated product categories.
The research firm pointed to Ralph Lauren’s successful key cities ecosystem strategy, which positions the company for further geographic expansion opportunities.
Telsey’s new $350 price target assumes a 21.0x multiple on its two-year forward EPS estimate of $16.66, compared to Ralph Lauren’s current next-twelve-months multiple of 20.4x and the luxury sector average of 22.2x.
In other recent news, Ralph Lauren presented its strategic growth plan, "Next Great Chapter: Drive," during an investor day in New York City. The company outlined a three-year financial outlook, projecting revenue growth at a mid-single-digit rate annually through fiscal 2028 and an operating margin expansion by 100 to 150 basis points in the same period. Additionally, Ralph Lauren announced a regular quarterly dividend of $0.9125 per share, payable on October 10, 2025, to shareholders of record as of September 26, 2025. Analyst firms have shown optimism toward Ralph Lauren’s strategies, with Needham raising its stock price target to $350, citing the brand’s stability amidst a challenging retail environment. Similarly, Wells Fargo increased its price target to $345, expecting international markets to drive growth. CFRA upgraded Ralph Lauren’s stock from Sell to Hold, raising its price target to $250 due to improved fundamentals. The firm also adjusted its earnings per share estimates for fiscal years 2026 and 2027 to $13.75 and $14.00, respectively. These developments indicate a positive outlook from analysts regarding Ralph Lauren’s future performance.
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