Ralph Lauren (RL) PT Raised to $345 at Wells Fargo

Wells Fargo analyst Ike Boruchow raised the price target on Ralph Lauren (NYSE: RL) to $345.00 (from $320.00) while maintaining a Overweight rating.

The analyst comments "What Could the Numbers Look Like? We expect 1) Top Line: a more moderate +MSD algo (with greater growth stemming from overseas), 2) Margins: less focus on GMs (vs. prior AD) and a better balance of AUR/GM against cost leverage and 3) Bottom Line: We believe a 3-Yr algo consisting of a +MSD top-line CAGR as well as 50-100bps of annual margin expansion seems likely - with a reminder that FY26 is already running well ahead of that algo (meaning RL has ample cushion built into its 3-Yr goals). Where Does EPS Power Land? If our assumptions are accurate, we believe this will put FY28 EPS Power at ~$19.50 (well above Street which currently sits at ~$18.00). It's difficult to know exactly how management will lay their goals out (RL has been notably conservative with their planning process the past few years), but at a minimum we believe out-year Street numbers will be heading higher post AD. With our confidence remaining high, we raise our PT to $345 (based on 22x our FY27 EPS)."

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