There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on PVH (NYSE:PVH) and Methode Electronics (NYSE:MEI) with bullish sentiments.
PVH (PVH)
B.Riley FBR analyst Susan Anderson reiterated a Buy rating on PVH today and set a price target of $160. The company’s shares opened today at $142.29.
Anderson said:
“On 8/29/18, AMC, PVH Corp (PVH) reported adjusted 2Q EPS of $2.18, well above B. Riley FBR/consensus estimates of $2.10/$2.09. Gross margin leveraged +15 bps, (vs. B. Riley FBR/ consensus estimate of +130 bps/+48 bps) and SG&A leveraged by +6 bps, versus B. Riley FBR/ consensus estimates of –70 bps/–114 bps. Total revenue increased +13% a constant currency basis. PVH gave EPS guidance in the range of $3.10 to $3.30 for 3Q18, vs. B. and raised 2018 guidance from $9.05–$9.15 to $9.20– $9.25 vs. B. Riley FBR/consensus of $9.15/$9.18. As evidenced by the strong 2Q performance, we believe Hilfiger are both benefiting from the start of a more fashion driven cycle, which they are capitalizing on through their dynamic marketing campaigns.”
According to TipRanks.com, Anderson is a 4-star analyst with an average return of 5.9% and a 56.3% success rate. Anderson covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Abercrombie Fitch.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for PVH with a $181.38 average price target, implying a 27.5% upside from current levels. In a report issued on August 29, Guggenheim also assigned a Buy rating to the stock with a $180 price target.
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Methode Electronics (MEI)
B.Riley FBR analyst Christopher Van Horn reiterated a Buy rating on Methode Electronics today and set a price target of $49. The company’s shares opened today at $39.15.
Van Horn said:
“We reiterate our Buy rating and $49 price target on Methode Electronics (MEI) shares following F1Q19 results, reported August 30 before market open. Our earnings takeaways were largely positive: Margins were stronger than expected, the company reiterated sales guidance despite a lower F1Q top line, Dabir continued to make progress in the quarter, and the company reported winning significant new automotive business that should help long-term growth. We see a potential positive near-term catalyst: MEI expects to close on the acquisition of Grakon — a transportation lighting supplier — in September 2018. We believe that this business will drive meaningful EPS accretion and MEI’s fairly low cost of debt; we continue to estimate that annualized adj. EPS accretion (ex. certain non-recurring transaction costs) could be over $0.20.”
According to TipRanks.com, Horn is a 4-star analyst with an average return of 9.2% and a 59.6% success rate. Horn covers the Industrial Goods sector, focusing on stocks such as Superior Industries International, Tower International, and Park-Ohio Holdings.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Methode Electronics with a $48.50 average price target.
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