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PVH Rose 2.7% Yesterday on Credit Suisse Price Target Revision

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PVH rebounds as Credit Suisse raises price target

PVH (PVH) rose 2.7% yesterday after Credit Suisse reaffirmed its “outperform” rating on the company and raised the price target to $185 from $178. This rise ended the five-day losing streak for the company and put it among the top S&P 500 Consumer Discretionary gainers on Tuesday.

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What’s behind the target price revision?

Analyst Michael Binetti said that PVH is likely to steal market share from stumbling competitors like Nautica and Kenneth Cole. He projected a healthy 13% to 15% rise in the company’s EPS despite headwinds related to tariffs, volatility in currency, and rising cotton prices. Binetti believes that PVH might expand through licensing deals or large-scale mergers or acquisitions going forward.

The revised price target of $185 indicates an upside of 20% on Tuesday’s stock price of $153.83. The average price target from the 19 analysts covering PVH is $174, reflecting an upside of 13%. PVH is currently sitting at YTD (year-to-date) gains of 12% and has outperformed the S&P 500 Index, which has posted gains of 1.8% year-to-date, by a significant gap.

Wall Street recommendations

PVH is among the best-rated apparel stocks. The company is rated a 2.0 on a scale where one is a “strong buy” and five is a “strong sell.” In comparison, Ralph Lauren (RL), Michael Kors (KORS), and VF (VFC) are rated 3.0, 2.6, and 2.3, respectively.

79% of analysts who cover PVH recommend buying the stock, 16% suggest holding it, while 5% have a “sell” recommendation.

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