BofA/Merrill Lynch downgraded PVH Corp (NYSE: PVH) from Neutral to Underperform with a price target of $125.00 citing unfavorable risk/reward following the post Q2 report rebound.

Analyst Robert Ohmes said while the company could benefit in F16 from anniversarying F15 initiatives that likely restrained sales & EPS upside, the stock is now trading at over 15x their below consensus F16 EPS estimate of $8.50.

The firm believe the company will remain challenged in F15 given their view that we are still in an Apparel Malaise and considering PVH shares historically underperform, during:(1) promotional/deflationary apparel environments in the US; (2) periods of a flat-to-rising financial obligations ratio for U.S. consumers (pressuring growth of discretionary dollars to be spent on apparel); and (3) shifts to an economic backdrop favoring mid-cycle (vs. early-cycle) stock relative stock performance vs the S&P 500.

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 $128.38 yesterday.