Analysts’ recent views on PVH
As discussed throughout this seven-part series, PVH (PVH) reported better-than-expected 4Q17 results on March 28. While there were no rating changes after the results, there were some target price changes, including the following:
- Cowen and Company, from $165 to $170
- Deutsche Bank, from $175 to $179
- JPMorgan Chase, from $166 to $170
- Credit Suisse, from $175 to $178
Wall Street’s views on PVH
PVH is covered by 17 Wall Street analysts, who together rate the company a 1.8 on a scale of 1 (strong buy) to 5 (strong sell). It has a better rating than peers Ralph Lauren (RL), VF (VFC), and Michael Kors (KORS), which have ratings of 3.0, 2.3, and 2.6, respectively.
Of the analysts covering PVH, 88% have recommended “buy,” and 12% have recommended “hold.” There have been no “sell” recommendations. In comparison, 47%, 52%, and 22% of analysts covering Hanesbrands (HBI), VFC, and Ralph Lauren have recommended “buy,” respectively. Deutsche Bank, Barclays, and Credit Suisse recommended “buy” for PVH, while Bernstein and Instinet recommended “hold.”
Comparing target prices and potential returns
PVH is currently trading at $151.43, ~4.3% below its 52-week high. Analysts expect the company’s stock to touch $169 over the next 12 months, suggesting an upside of ~12% based on its current price.
The company may have a better potential return than VFC and Ralph Lauren, which have potential upsides of 10% and 0%, respectively. Investors seeking exposure to PVH could consider the First Trust Consumer Discretionary AlphaDEX ETF (FXD), which invests 1% of its portfolio in the company.