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Wall Street Analysts’ View on PVH Corp Is Positive

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Wall Street analysts’ view on PVH Corp

Wall Street analysts have a positive view on PVH Corp (PVH). The company’s stock received a rating of 2.3 on a scale of 1 (strong buy) to 5 (strong sell). PVH Corp’s rating is better than the ratings of VF Corp (VFC), Ralph Lauren (RL), and Gap (GPS), which are rated 2.7, 3.1, and 3.1, respectively.

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Analysts’ recommendations

PVH Corp stock is covered by 16 analysts—63% of the analysts recommended a “buy” on the stock. In comparison, 27% and 6% of the analysts recommended a “buy” on VF Corp and Ralph Lauren. Hanesbrands (HBI), with 71% “buy” ratings, is the most preferred apparel stock by Wall Street analysts.

It’s important to note that 31% of the analysts recommended a “hold” on PVH Corp stock, while 6% recommended a “sell.”

Target price and gain potential

Currently, PVH Corp is trading at $100.41, which is ~15% below its 52-week high price. Analysts expect the company’s stock price to touch $112.27 in the next 12 months, which indicates upside potential of 12%.

The company has better upside than VF Corp and Ralph Lauren. The stock prices of these two companies are projected to gain 4% and 9%, respectively. Hanesbrands’ stock is expected to gain ~25% in the next 12 months.

Valuations

Currently, PVH Corp is trading at a one-year forward price-to-earnings ratio of 13.3x—lower than its three-year average of 14.4x. It trades at a discount to peers VF Corp at 17.3x and Ralph Lauren at 14.3x. It trades at a premium to Hanesbrands at 10.2x and Gap at 11.8x.

ETF investors seeking to add exposure to PVH Corp can consider the PowerShares S&P 500 High Beta Portfolio (SPHB), which invests ~1% of its portfolio in PVH Corp.

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