Ralph Lauren (NYSE:RL) jumped 2.7% after Cowen upgraded the stock to outperform from market perform as we set aside our loungewear.
Shares are up more than 75% this year, but the Street may be underestimating the stock, analyst John Kernan wrote in a note, boosting the price target to $152 from $110, CNBC said.
Demand for preppy luxe appears to be strengthening amid the company’s cost-cutting measures, Kernan said.
“Ralph Lauren is somewhat unique in its positioning in that a series of operational restructurings were put in place pre-pandemic and, in some cases, accelerated through the pandemic, with the goal of emerging a stronger company post pandemic and for the long-term where the industry is likely to remain very digitally focused,” the note said.
It helps that we’ve saved a ton of money on top of receiving stimulus and have barely stepped out since March 2020.
“Wardrobe building into FY22 is a positive for the current environment where discretionary spend may shift to more formal apparel relative to the comfort/athletic trends that dominated 2020,” the note said.
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