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UBS raises Ralph Lauren stock target, maintains buy rating By Investing.com

Ralph Lauren PT Raised to $82 at Goldman Sachs


On Thursday, UBS displayed confidence in Ralph Lauren Corp’s (NYSE:) near-term future by increasing the stock’s price target from $244.00 to $250.00, while keeping a Buy rating. The firm highlighted that, despite not expecting Ralph Lauren’s fourth-quarter report to serve as a significant catalyst, there is optimism regarding the company’s guidance for fiscal year 2025.

UBS anticipates Ralph Lauren to forecast earnings per share (EPS) in the range of $10.60 to $11.00, aligning with market expectations, though sell-side forecasts are slightly higher at $11.28.

The firm’s analysis suggests that investors are accustomed to Ralph Lauren’s pattern of setting conservative guidance that can be exceeded. There is potential for upside risk if international growth outperforms, possibly leading Ralph Lauren to set guidance above expectations.

On the other hand, a slower April could result in a weaker than expected guide for the first quarter, potentially dampening investor sentiment.

UBS also noted the options market’s anticipation of volatility surrounding Ralph Lauren’s earnings report. Current options pricing suggests the stock could fluctuate by approximately 8.3% in response to the earnings announcement, which is higher than its average earnings day movement of 6.2%. Despite this, UBS expects less volatility than what the options market is pricing in.

Ralph Lauren’s stock performance and investor expectations will be closely watched as the company prepares to release its earnings report. The updated price target reflects UBS’s belief in the company’s ability to achieve its projected financial outcomes for the upcoming fiscal year.

InvestingPro Insights

As UBS updates its price target for Ralph Lauren Corp (NYSE:RL), investors seeking a deeper understanding of the company’s financial health can find valuable metrics and insights on InvestingPro. With a robust Market Cap of $10.67B and an attractive P/E Ratio that stands at 18.58, Ralph Lauren demonstrates a strong market presence. Adjusted for the last twelve months as of Q3 2024, the P/E Ratio further refines to 16.96, indicating a potentially undervalued stock relative to near-term earnings growth.

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InvestingPro Tips highlight the company’s impressive gross profit margins, recorded at 65.66%, showcasing its efficiency in managing production costs relative to its revenues. Additionally, Ralph Lauren’s ability to…

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