Brean Capital Raises Price Target on PVH Corp. (PVH) to $111 Following Strong 4Q

Brean Capital reiterated a Buy rating on PVH Corp (NYSE: PVH), and raised the price target to $111.00 (from $102.00), following the company's 4Q earnings call. PVH delivered a revenue and GM upside in 4Q, with EPS of $1.52 coming in favorable to consensus' $1.47, while FY15 EPS of $7.05 compared to February's pre-announced guidance for EPS "at or above $7.00".

Analyst Eric Tracy commented, "Our takeaways from Thursday's PVH earnings call were largely in line with those we had coming out of Wednesday's earnings release, with share strength Thursday (closed up 8%) on better-than-feared 4Q results and guidance reflecting increased investor appreciation for PVH's improved ex-FX operating model (mgmt expects 12%-15% EPS 3yr CAGR), as investments in CK/ improved TH profitability continue to bear fruit and cyclical headwinds begin to wane. While FX will likely continue to drag in FY16 (by $1.60, $3.00+ over last 2 years), we are incrementally convicted around our bullish thesis, predicated on 1) continued runway for improving core CK profitability (bolstered by improve CK rev line), 2) TH int'l strength, 3) FCF optionality (potential for strategic acquisitions of licenses) and 4) still weak sentiment/attractive valuation (trades 13x vs. 2yr avg of 15x)... We are raising our TP to $111, 15x our FY17 EPS estimate of $7.43."

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 $94.29 yesterday.

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