Ralph Lauren’s Target Price Rose after Its 2Q18 Results



Ralph Lauren’s YTD stock market performance

The market received Ralph Lauren’s (RL) 2Q18 results well. Ralph Lauren stock rose 2.5% after the results on November 2. However, the share price fell more than 4% in the next two trading days, which put the company back in the red.

Ralph Lauren is sitting at a YTD (year-to-date) loss of 2.5%. Its branded apparel peers PVH (PVH) and VF Corp (VFC) have risen 41% and 30% this year.

Ralph Lauren has underperformed the S&P 500 Apparel and Accessories Index and the S&P 500 Index (SPX), which have recorded YTD gains of 7.6% and 15.7%, respectively.

Analysts’ actions

There weren’t any recommendation changes on Ralph Lauren after its 2Q18 results. However, several analysts raised their target price on the company.

The target price revisions included:

  • Barclays (from $84 to $87)
  • Citigroup (from $91 to $98)
  • RBC (from $88 to $95)
  • Telsey Advisory ($88 to $93)
  • Morgan Stanley (from $83.5 to $91)
  • JPMorgan Chase ($86 to $98)

According to the latest data compiled by Thomson Reuters, the average target price on Ralph Lauren is $93.19, which reflects an upside of 6%.

Among its branded apparel peers, Hanesbrands (HBI) has the biggest attached upside of 31%. Tapestry (TPR) and PVH also have strong upside potentials. Their stock prices are expected to rise 17% and 11%, respectively, in the next 12 months.

Analysts’ take on Ralph Lauren

Ralph Lauren is covered by 21 Wall Street analysts. Together, they rate the stock as a three on a scale of one (strong buy) to five (strong sell).

It’s important to note that 81% of the analysts including Atlantic Equities, Cowen and Company, and JPMorgan Chase suggest holding Ralph Lauren stock. At the same time, 9.5% of the analysts recommend the stock as a “buy,” while 9.5% suggest it as a “sell.”

ETF investors looking to add exposure to Ralph Lauren can consider the PowerShares Russell Midcap Pure Value Portfolio (PXMV), which invests 1.1% of its holdings in the company.

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