Ralph Lauren Brand Turnaround Is Gaining Traction, JPMorgan Says
Ralph Lauren Corp (NYSE: RL) may be on the verge of a comeback. JPMorgan analyst Matthew Boss maintains an Overweight rating on the stock and raised his price target from $140 to $141. “Importantly, management sees foundational investments including a 25% cut in department store points of distribution, US off-price sales down 30%, Denim & Supply exit, SKU reduction and meaningful pull-back in promotions (particularly online) largely in the rear view mirror with multiple drivers to support low-single-digit revenue growth going forward,” Boss wrote in a note. The analyst noted while the company is maintaining a multi-year conservative capital plan and balance sheet, Ralph Lauren is on track of guidance for $400 million of share repurchases in 2019 and is set to repurchase a further $600 million of shares by 2020.