UBS Raises Price Target on PVH Corp. (PVH) Following 3Q Report

UBS reiterated a Buy rating on PVH Corp (NYSE: PVH), and raised the price target to $130.00 (from $125.00), following the company's 3Q earnings report. PVH beat 3Q guidance by $0.20 & raised FY16 guidance by $0.15. Revenues were up +3.7%, compared to the Street at +3%) driven by CK +10% ex-FX.

Analyst Michael Binetti commented, "PVH reported a quality 3Q EPS beat (with the strongest gross profit dollar growth rate since 4Q13) of $2.60 (UBSe: $2.46, Street: $2.40). Revs were up +3.7% (UBSe: +3.2%, Street: +3%) driven by CK +10% ex-FX (UBSe: +6%); Tommy +6% ex-FX (UBSe: +6%); Heritage –8% (UBSe: -5.8%). GM was up +200bp YOY (UBSe: +135bp); SG&A delevered by 285bp YOY (slightly worse than our 235bp estimate). Inventory was very well managed (-5.5% YOY vs revs +3.7%) and PVH is lapping excess promos from 4Q15—which should support a 4Q GM acceleration (we're raising our 4Q GM estimate to +235bp YOY, vs +200bp previously). PVH guided below our/Consensus estimates in 4Q (see below), but we believe the business is trending well above plan in 4Q to date."

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 $105.94 yesterday.

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