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After 52-Week High Price, Ralph Lauren Has 14% Downside

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Wall Street’s take on Ralph Lauren

Ralph Lauren (RL) is covered by 18 Wall Street analysts. Together, they rate the stock a 3.1 on a scale of 1 (“strong buy”) to 5 (“strong sell”).

72% of analysts—including Morgan Stanley, Cowen and Company, and J.P. Morgan—suggest holding Ralph Lauren’s stock. 11% of analysts—including Citigroup—recommend buying it while another 17%—including Bank of America—suggest selling it.

The company’s rating has worsened over the last three months. It was rated a 3.0 at the beginning of November. However, downgrades by Miller Tabak (from “hold” to “sell”) and Bank of America (from “neutral” to “underperform”) negatively impacted its overall ranking.

Most of Ralph Lauren’s apparel peers have better ratings. PVH (PVH), VF (VFC), and Hanesbrands (HBI), for instance, are rated 1.5, 2.5, and 2.4, respectively.

Target price

Ralph Lauren’s share price was recently revised by a couple of brokerage houses. J.P. Morgan raised its price target from $98 to $118 on January 18.

On January 17, RL’s target price at Instinet rose from $89 to $92. On January 16, Telsey Advisory raised its price target from $93 to $109.

Wall Street, on average, has set a price target of $96.86 on the fashion giant, reflecting a downside of 14%.

Ralph Lauren recently hit a 52-week high price of $112.89 on January 22.

ETF investors looking to add exposure to Ralph Lauren can consider the PowerShares Russell Midcap Pure Value Portfolio (PXMV), which invests 1.4% of its holdings in the company.

ETF investors looking to add exposure to Ralph Lauren can consider the iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF), which invests 1.8% of its portfolio in the company.

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