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UBS reiterates a 'Buy' on Ralph Lauren (RL); Ponying Up for a Top Quality Name

February 10, 2012 1:07 PM EST
RL Hot Sheet
Rating Summary:
    8 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS reiterates a 'Buy' on Ralph Lauren (NYSE: RL) price target raised from $165 to $195.

UBS analyst says, "We believe FY13 Street rev ests are likely to prove too low based on RL’s full pipeline of growth opportunities. Further, with cyclical cost pressures reversing and an ongoing favorable mix shift towards high margin businesses, we expect EBIT margins to expand by 30bp & 40bp, driving best-in-class +17% EPS growth in both FY13 & FY14."

"...We are reducing our F4QE GM to -100bp YOY from flat and lowering F4QE EPS to $0.98 from $1.08 (Street $0.94). That said, we believe strong rev trends will continue in FY13 and are raising our FY13 rev est to +13% YOY (prev +10.5%) and our FY13E EPS to $8.37 (+17.5% YOY; Street: $8.18) from $8.26."

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 $172.54 yesterday, with a 52 week range of $105.11-$178.47.


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