Ralph Lauren (RL) Lifted to “Buy” at Zacks Investment Research

Ralph Lauren (NYSE:RL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage presently has a $116.00 target price on the textile maker’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.67% from the company’s previous close.

According to Zacks, “Ralph Lauren outperformed the industry in the past six months backed by robust bottom-line performance in recent quarters. Notably, third-quarter fiscal 2018 marked the company’s 12th consecutive earnings beat while sales lagged estimates after a beat in the previous quarter. Results gained from stringent focus on key initiatives during the holiday season that reduced discounts and improved the quality of sales. Furthermore, gross margin expanded driven by favorable geographic and channel mix shifts along with lower promotions and reduced product costs. Favorable currency rates aided results as well. Management adjusted fiscal 2018 outlook to account for the positive currency rates, which are likely to aid revenues and operating margins. However, its North America business continues to suffer due to distribution and brand exits, planned reduction in shipments and promotions to enhance the quality of sales, and lower customer demand.”

RL has been the topic of a number of other research reports. Nomura lifted their price target on Ralph Lauren from $92.00 to $111.00 and gave the company a “neutral” rating in a report on Friday, February 2nd. ValuEngine upgraded Ralph Lauren from a “hold” rating to a “buy” rating in a report on Friday, December 1st. Bank of America downgraded Ralph Lauren from a “neutral” rating to an “underperform” rating and lowered their price target for the company from $100.14 to $80.00 in a report on Wednesday, December 13th. Telsey Advisory Group lifted their price target on Ralph Lauren from $109.00 to $115.00 and gave the company a “market perform” rating in a report on Friday, February 2nd. Finally, Cowen set a $97.00 price target on Ralph Lauren and gave the company a “hold” rating in a report on Wednesday, November 1st. Five analysts have rated the stock with a sell rating, nine have issued a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $98.05.

Shares of Ralph Lauren (NYSE RL) traded up $0.49 during mid-day trading on Tuesday, hitting $103.88. The stock had a trading volume of 258,689 shares, compared to its average volume of 1,200,786. Ralph Lauren has a twelve month low of $66.06 and a twelve month high of $119.33. The company has a quick ratio of 1.58, a current ratio of 2.07 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $8,411.15, a P/E ratio of -102.83, a price-to-earnings-growth ratio of 1.71 and a beta of 0.65.

Ralph Lauren (NYSE:RL) last issued its quarterly earnings results on Thursday, February 1st. The textile maker reported $2.03 earnings per share for the quarter, beating analysts’ consensus estimates of $1.87 by $0.16. Ralph Lauren had a positive return on equity of 14.64% and a negative net margin of 1.33%. The business had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the previous year, the company posted $1.86 earnings per share. Ralph Lauren’s revenue for the quarter was down 4.3% compared to the same quarter last year. analysts anticipate that Ralph Lauren will post 5.93 EPS for the current fiscal year.

A number of hedge funds and other institutional investors have recently modified their holdings of RL. Bank of New York Mellon Corp grew its stake in Ralph Lauren by 49.7% in the third quarter. Bank of New York Mellon Corp now owns 6,587,184 shares of the textile maker’s stock valued at $581,581,000 after purchasing an additional 2,186,269 shares in the last quarter. Ameriprise Financial Inc. grew its stake in Ralph Lauren by 973.3% in the third quarter. Ameriprise Financial Inc. now owns 1,410,657 shares of the textile maker’s stock valued at $124,553,000 after purchasing an additional 1,279,221 shares in the last quarter. American Century Companies Inc. grew its stake in Ralph Lauren by 149.3% in the fourth quarter. American Century Companies Inc. now owns 933,827 shares of the textile maker’s stock valued at $96,829,000 after purchasing an additional 559,273 shares in the last quarter. Jupiter Asset Management Ltd. grew its stake in Ralph Lauren by 35.7% in the third quarter. Jupiter Asset Management Ltd. now owns 1,550,500 shares of the textile maker’s stock valued at $136,894,000 after purchasing an additional 408,000 shares in the last quarter. Finally, Ardevora Asset Management LLP purchased a new position in Ralph Lauren in the third quarter valued at about $35,440,000. Hedge funds and other institutional investors own 67.38% of the company’s stock.

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Ralph Lauren Company Profile

Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories. The Company operates through three segments: Wholesale, Retail and Licensing. Wholesale business consists of sales made to department stores and specialty stores around the world.

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