UBS Maintains a 'Buy' on Ralph Lauren (RL); Taking A More Conservative Approach

May 23, 2012 10:54 AM EDT Send to a Friend
Get Alerts RL Hot Sheet
Price: $160.25 -0.58%

Rating Summary:
    13 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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UBS maintains a 'Buy' on Ralph Lauren (NYSE: RL) price target lowered from $195 to $180.00.

Analyst, Michael Binetti, said, "RL has one of the best top-line outlooks vs big cap apparel peers, and we believe the company is under-earning due to (now diminishing) cyclical cost headwinds & above-trend investment spending. We believe revs will accelerate by F2H13 (as the drag from China store closures,
elimination of Amer. Living, and FX diminish), and RL will begin to revert to “natural margins” as cyclical cost pressures & investment spending abate. We estimate that RL has $1+ of incremental EPS power over the next few yrs as businesses revert to natural margins."

UBS lowers FY13 EPS estimate from $8.37 to $7.90 and FY14 from $9.80 to $9.32,

For an analyst ratings summary and ratings history on Ralph Lauren click here. For more ratings news on Ralph Lauren click here.

Shares of Ralph Lauren closed at $150.27 yesterday.


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