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 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.
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.