Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Friday, UBS analysts reaffirmed their Buy rating on Ralph Lauren shares (NYSE:RL), maintaining a price target of $348.00. Trading at $281.70 and near its 52-week high of $289.33, the stock has already delivered impressive returns of 59.36% over the past year. The UBS team highlighted Ralph Lauren as a high-quality growth stock poised to outperform in the near term (NTM). The optimism is based on anticipated positive earnings per share (EPS) surprises, which are expected to lead to upward revisions of sell-side EPS estimates and an expansion of the price-to-earnings (P/E) ratio, currently at 25.37x.
UBS analysts believe that these EPS beats will prompt the market to recognize the significant changes Ralph Lauren has implemented in its brand image, distribution model, and cost structure. The company maintains impressive gross profit margins of 68.08% and receives a "GREAT" Financial Health Score from InvestingPro. According to UBS, these improvements position Ralph Lauren as a company capable of capturing greater market share, though InvestingPro's Fair Value analysis suggests the stock may be overvalued at current levels.
The UBS team projects a compound annual growth rate (CAGR) of approximately 12% in Ralph Lauren's EPS over the next five years. This growth projection bolsters their confidence in the stock's potential for a favorable risk-reward balance.
The affirmation of the Buy rating and price target followed a meeting with Ralph Lauren's management on February 13th, which reinforced UBS analysts' conviction in their positive outlook for the company. The analysts' commentary suggests a strong belief in Ralph Lauren's ongoing transformation and its impact on the company's financial performance moving forward.
In other recent news, Ralph Lauren has been the focus of several analyst firms adjusting their price targets and ratings. Needham initiated coverage on Ralph Lauren shares with a Buy rating and a price target of $310, highlighting the brand's consistent strategy execution and nearly eight consecutive years of year-over-year growth in Average Unit Retail. UBS analyst Jay Sole raised the price target for Ralph Lauren shares to $348, reaffirming a Buy rating based on the expectation of positive earnings per share surprises.
Telsey Advisory Group analyst Dana Telsey increased the price target for Ralph Lauren shares to $315 while maintaining an Outperform rating, following the company's robust financial quarter and surpassed earnings expectations. Jefferies analyst Ashley Helgans also increased the price target on Ralph Lauren shares to $330, maintaining a Buy rating and noting the company's strong third-quarter performance and growth across all regions.
Lastly, Barclays (LON:BARC) raised the price target for Ralph Lauren shares to $310 while maintaining an Overweight rating, indicating their belief in the brand's momentum and successful business repositioning. These developments reflect the growing confidence in Ralph Lauren's strategic investments, execution, and potential for sustained growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.