(News Bulletin 247) – Bank of America announced on Monday that it had raised its recommendation on Ralph Lauren shares from ‘neutral’ to ‘buy’, with a price target also raised from 130 to 145 dollars.
In a research note, the intermediary justifies his optimism by his confidence in the continuation of the favorable dynamic which is driving the sales of the American ready-to-wear group and the reduction of its cost base.
Assuming an improvement in profit margins for the New York company, BofA says it is raising its earnings per share (EPS) forecasts for the 2022/2023 and 2023/2024 financial years by 6% and 10% respectively.
According to the analyst, Ralph Lauren’s wholesale network business is the best positioned in the entire US apparel industry, while its market valuation remains attractive based on an Enterprise Value to Ebitda of 6.9x.
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