Zacks Downgrades Ralph Lauren Corp to Underperform (RL)
Ralph Lauren Corp (NYSE:RL) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research report issued to clients and investors on Wednesday. They currently have a $142.00 price objective on the stock. Zacks‘s price target indicates a potential downside of 10.07% from the company’s current price.
Zacks’ analyst wrote, “We have downgraded our recommendation on Ralph Lauren to Underperform after the company provided a disappointing first-quarter and fiscal 2015 guidance. Though the company’s fourth-quarter fiscal 2014 results were strong, it projects a slowdown in sales growth and a decline in margins in the first quarter as well as for fiscal 2015. The company highlighted that the weak forward outlook was mainly due to increased investments toward enhancement of its global retail operations and infrastructure as well as higher capital allotments to augment advertising and marketing. Moreover, uncertainty regarding the company’s future leadership remains a factor that may hurt the stock’s future performance. Further, rising raw material prices is another matter of concern that could drag the company’s margins.”
Shares of Ralph Lauren Corp (NYSE:RL) traded down 0.74% during mid-day trading on Wednesday, hitting $156.29. 453,294 shares of the company’s stock traded hands. Ralph Lauren Corp has a one year low of $141.93 and a one year high of $189.80. The stock has a 50-day moving average of $152. and a 200-day moving average of $159.5. The company has a market cap of $13.867 billion and a price-to-earnings ratio of 18.68.
Ralph Lauren Corp (NYSE:RL) last posted its quarterly earnings results on Friday, May 9th. The company reported $1.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.63 by $0.05. The company had revenue of $1.83 billion for the quarter, compared to the consensus estimate of $1.83 billion. During the same quarter in the previous year, the company posted $1.41 earnings per share. The company’s revenue for the quarter was up 13.6% on a year-over-year basis. Analysts expect that Ralph Lauren Corp will post $8.69 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, July 11th. Shareholders of record on Friday, June 27th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 1.14%. The ex-dividend date is Wednesday, June 25th.
Other equities research analysts have also recently issued reports about the stock. Analysts at Maxim Group reiterated a “buy” rating on shares of Ralph Lauren Corp in a research note on Thursday, May 15th. They now have a $203.00 price target on the stock. Separately, analysts at JPMorgan Chase & Co. cut their price target on shares of Ralph Lauren Corp from $170.00 to $152.00 in a research note on Tuesday, May 13th. They now have a “neutral” rating on the stock. Finally, analysts at Janney Montgomery Scott cut their price target on shares of Ralph Lauren Corp from $176.00 to $171.00 in a research note on Tuesday, May 13th. They now have a “buy” rating on the stock. One analyst has rated the stock with a sell rating, six have issued a hold rating and eleven have given a buy rating to the company. Ralph Lauren Corp presently has a consensus rating of “Buy” and a consensus price target of $167.27.
In other Ralph Lauren Corp news, COO Jackwyn Nemerov sold 28,371 shares of the company’s stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $153.44, for a total transaction of $4,353,246.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
Ralph Lauren Corporation is engaged in the design, marketing and distribution of products, including men’s, women’s and children’s apparel, accessories (NYSE:RL), fragrances and home furnishings.
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