Wells Fargo Upgrades Ralph Lauren (RL) to Outperform

February 26, 2014 7:07 AM EST
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Price: $89.29 --0%

Rating Summary:
    9 Buy, 20 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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Wells Fargo upgraded Ralph Lauren (NYSE: RL) from Market Perform to Outperform with a valuation range of $186.00 to $197.00 from $166.00 to $171.00. The firm said several new initiatives could accelerate growth.

"We see an inflection point for RL with several new initiatives that could accelerate sales growth. EPS revisions could turn positive on sales momentum as we believe investment spending-related margin pressure for FY2015 is already well laid out by RL and is mostly in consensus estimates and the stock," analyst Evren Kopelman said. "We also see a potential acceleration in share buybacks. Our valuation range is $186-197 (vs. $166-171 prior) based on 18-19x our FY2016E EPS of $10.35, in line with RL’s historical valuation and peers, and a higher multiple than we applied previously due to the upcoming improvement in EPS profile."

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 $159.99 yesterday.

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