Piper Jaffray Raises Price Target on PVH Corp. (PVH) to $109 Following 1Q Beat

Piper Jaffray reiterated an Overweight rating on PVH Corp (NYSE: PVH), and raised the price target to $109.00 (from $103.00), following the company's 1Q report. Overall, sales came in at $1,918M, slightly ahead of Piper's $1,899M estimate and EPS at $1.50 vs. $1.43 estimate.

Analyst Erinn Murphy commented, "We are maintaining our OW rating on PVH and raising our estimates and PT following a much better Q1. Not only did sales and earnings exceed expectations, Q2 guidance was issued ahead of Street estimates, and FY17 EPS guidance was raised from $6.30-$6.50 to $6.45-$6.55. Q1 EPS was $1.50 (vs. our $1.43 estimate) or up 33% Y/Y on a CC growth basis. While PVH is not immune to the domestic consumer malaise, we are pleased by the initial Q2 EPS guide of $1.25-$1.30--ahead of the Street's $1.21 and implies a 24-28% Y/ Y CC growth rate. We believe the strength in both Europe and China is solid for the brand portfolio to date. During Q1, gross margins outperformed to the upside (up 100 bps vs. our 20 bps estimate) We are raising our estimates for Q2 and beyond and taking up our price target from $103 to $109."

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 $89.83 yesterday.

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