UPDATE: Goldman Sachs Adds Ralph Lauren (RL) to Conviction Buy List
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(Updated - October 7, 2016 8:47 AM EDT)
Goldman Sachs upgraded Ralph Lauren (NYSE: RL) from Buy to Conviction Buy with a price target of $120, implying potential return of 18%. Analyst Lindsay Drucker Mann expects to see results from the company's turnaround.
The analyst explained, "As CEO Stefan Larsson approaches his 1-year anniversary at the helm, we believe the foundational elements for a successful turnaround are in place. These include: (1) a major inventory drawdown – we model US wholesale shipments down ~20% over the next 4 quarters, (2) a major push to upgrade operating capabilities including faster speed-to-market and reduced SKU complexity, and (3) a kitty of cost savings from restructuring activities to cushion the bottom-line. In our view, sales targets look reasonable and margin targets look beatable. Our $120, 12-month PT applies 20X fwd P/E; we expect sentiment to improve as turnaround efforts gain credibility."
Shares of Ralph Lauren closed at $101.41 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Upgrades
Related EntitiesGoldman Sachs Conviction Buy List, Goldman Sachs
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