PVH (PVH): Risk/Reward Compelling into 1Q Print - Brean Capital

Brean Capital analyst, Eric Tracy, reiterated his 7 point buy thesis on PVH Corp (NYSE: PVH) ahead of earnings on Wednesday.

1) our belief that despite recent domestic dept store carnage, PVH will at a minimum, reiterate FY16 guide

2) CK rev momentum, both in the US and Europe, continues

3) CK profitability improvements remain early days

4) guide embeds weak TH domestic biz

5) FX fades in 2H

6) FCF optionality (debt paydown gives way to accretive acquisitions of strategic licenses

7) sentiment remains weak. As current discounted valuation (shares trading 12x vs. group at 16x, 14x historically) focuses on domestic department store risks

No change to Buy rating or $110 PT.

For an analyst ratings summary and ratings history on PVH Corp click here. For more ratings news on PVH Corp click here.

Shares of PVH Corp closed at $88.96 yesterday.

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