On Friday, Might 23, UBS analyst Jay Sole raised the worth goal on Ralph Lauren Company (NYSE:RL) from $335 to $384 and maintained a “Purchase” ranking.
This transformation comes after the corporate’s latest This autumn fiscal 2025 earnings report, which Sole sees as a cause to have an improved outlook on the corporate’s efficiency over the following 12 months.
A person and girl in enterprise apparel strolling down a avenue, luggage of clothes in hand.
The analyst is optimistic as a result of he expects Ralph Lauren Company (NYSE:RL) to report constructive EPS surprises that may end up in upward revisions in sell-side EPS estimates and a attainable price-to-earnings (P/E) growth. Sole believes these EPS beats will help the market see the vital modifications that the corporate has made in its model picture, distribution mannequin, and price construction.
Moreover, Sole famous that Ralph Lauren Company’s (NYSE:RL) upcoming Investor Day in September might spark extra curiosity within the inventory. He additionally famous that the inventory appears low-cost proper now, buying and selling at roughly 20 instances the forecasted EPS for the fiscal 12 months after subsequent. That is primarily based on UBS’ projection that Ralph Lauren Company (NYSE:RL) will develop its EPS at a compound annual development charge of 8.5% over the following 5 years. This implies a beautiful steadiness of threat and reward for traders.
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Disclosure: None.
