Guggenheim analyst Robert Drbul maintained a Buy rating on PVH (PVH) yesterday and set a price target of $150. The company’s shares closed yesterday at $109.77, close to its 52-week low of $106.63.
Drbul observed:
“We note 2 key issues with the Calvin brand (+2% revenue growth vs. our +5%): 1) soft response to the new CK jeans line (product wasn’t right, too elevated/fashion focused) and 2) poor return on investment in the CK collection business. The CK jeans business was softer globally, with Int’l revenue growing 3% (vs. our +6.5%) on a 1% comp (vs. +MSD% in 2Q) and NA sales up 1% (vs. our +3.5%) on a 2% comp decline (slowing from +LSD% in 2Q). We believe the CK brand remains healthy and expect improvement this Holiday, with sequential improvement into of next year. The company plans to re- focus product and marketing toward a broader audience (vs. higher fashion) in coming periods and focus on strength that continues in the CK underwear, women’s, and sportswear businesses.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 11.2% and a 64.8% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Wal-Mart Stores Inc.
PVH has an analyst consensus of Strong Buy, with a price target consensus of $155.90, implying a 42.0% upside from current levels. In a report issued on November 19, Credit Suisse also reiterated a Buy rating on the stock with a $150 price target.
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PVH’s market cap is currently $8.42B and has a P/E ratio of 12.41. The company has a Price to Book ratio of 1.51.
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PVH Corp. engages in the design and marketing of branded dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products, handbags, footwear, and other related products. It operates through the following segments: Calvin Klein North America, Calvin Klein International, Tommy Hilfiger North America, Tommy Hilfiger International, Heritage Brands Wholesale, and Heritage Brands Retail. The Calvin Klein North America and Calvin Klein International segments operates in North America; and Europe, Asia, and Brazil respectively. It sells its products under the brand names CALVIN KLEIN 205 W39 NYC, CK Calvin Klein, and CALVIN KLEIN. The Tommy Hilfiger North America and Tommy Hilfiger International segments wholesales in North America; and Europe and China respectively. It consists of Tommy Hilfiger, Hilfiger Denim, Hilfiger Collection, and Tommy Hilfiger Tailored brands. The Heritage Brands Wholesale segment markets its products to department, chain, and specialty stores, digital commerce sites operated by select wholesale partners and pure play digital commerce retailers in North America. The Heritage Brands Retail segment manages retail stores, primarily located in outlet centers throughout the United States and Canada. The company was founded in 1881 and is headquartered in New York, NY.
