UBS reiterates Buy rating on PVH stock with $146 price target

Investing.com - UBS maintained its Buy rating on PVH Corp (NYSE:PVH) with a price target of $146.00, representing a potential 77% upside from current levels. According to InvestingPro data, five analysts have recently revised their earnings estimates upward, and the company maintains a robust Financial Health Score of "GOOD."

The investment firm expressed confidence in PVH’s brand strength and balance sheet, which it believes will drive earnings growth over the long term despite multiple macroeconomic headwinds. Supporting this view, PVH maintains impressive gross profit margins of 58.79% and has demonstrated strong shareholder returns. UBS forecasts PVH will deliver a double-digit percentage earnings per share compound annual growth rate after fiscal year 2025.

PVH’s second-quarter report showed signs of stabilization following what UBS described as a "choppy" first-quarter performance. The company’s reiteration of its fiscal year 2025 earnings guidance has increased UBS’s conviction in its positive outlook.

UBS noted that PVH stock currently trades at approximately 7 times forward price-to-earnings ratio, while InvestingPro analysis indicates the stock is currently undervalued based on its proprietary Fair Value model. The firm expects this multiple to expand as PVH’s earnings rebound and its long-term growth drivers become more apparent to investors. For deeper insights into PVH’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The $146 price target is based on approximately 9.5 times UBS’s fiscal year 2027 earnings per share estimate of $15.40 for PVH. With a beta of 1.84 and current P/E ratio of 11.1x, UBS views the risk-reward profile as "very favorable" at current price levels.

In other recent news, PVH Corp reported first-quarter earnings that exceeded Wall Street expectations, with an earnings per share of $2.30, surpassing the forecasted $2.23. The company’s revenue also outperformed expectations, reaching $1.98 billion compared to the anticipated $1.93 billion. Despite these positive results, PVH Corp reduced its fiscal year 2025 earnings per share guidance by approximately 14%, citing limited tariff mitigation options and challenges with the Calvin Klein platform. Analysts from Jefferies responded by lowering the stock’s price target from $105 to $95 while maintaining a Buy rating. Similarly, Needham adjusted its price target from $115 to $100, also keeping a Buy rating. In other developments, PVH Corp issued $500 million in senior notes due in 2030, with an interest rate of 5.500%. The company also declared a quarterly cash dividend of $0.0375 per share, payable in September 2025. These recent developments highlight PVH Corp’s ongoing financial activities and market responses.

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