Kontoor Brands Inc (KTB) received a Buy rating and a $35 price target from Guggenheim analyst Robert Drbul today. The company’s shares closed on Friday at $28.30, close to its 52-week low of $27.16.
Drbul observed:
“We initiate coverage of and introduce a $35 PT. We favor KTB’s 1) portfolio of solid brands with rich histories, 2) strong management team, and 3) robust dividend yield (annual dividend would represent ~8% at today’s levels). While denim is a highly competitive segment in the apparel market, we believe KTB’s robust cash generation has the potential to reward investors through the delevering of the balance sheet, a L-T dividend yield target of ~5%, and an acute focus on total shareholder return (TSR). These factors warrant a BUY-rating, in our view. As we think about Kontoor’s future, we will get used to this name; just as the Tapestry name has grown on us. We believe the significance of the name stems from the fact KTB does not want to be constrained primarily as a denim company.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 8.9% and a 66.2% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ascena Retail Group.
Currently, the analyst consensus on Kontoor Brands Inc is a Moderate Buy with an average price target of $35.80, implying a 26.5% upside from current levels. In a report issued on June 13, Susquehanna also initiated coverage with a Buy rating on the stock with a $36 price target.
See today’s analyst top recommended stocks >>
The company has a one-year high of $41.75 and a one-year low of $27.16. Currently, Kontoor Brands Inc has an average volume of 2.05M.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Kontoor Brands, Inc. engages in the manufacture and sale of apparel. It designs, manufactures, sources, markets, and distributes its portfolio of brands which include Wrangler and Lee denim, apparel, and accessories. The company was founded on November 11, 2018 and is headquartered in Greensboro, NC.
