In a report released yesterday, Robert Drbul from Guggenheim reiterated a Buy rating on Kontoor Brands Inc (KTB). The company’s shares closed yesterday at $27.75, close to its 52-week low of $26.27.
Drbul commented:
“We are maintaining our estimates but are encouraged by the update as it increases our conviction in the security of the dividend and provides additional clarity. At a current expected yield of ~8%, we reiterate our BUY rating. For a more detailed look on our outlook for the company, please find our initiation on 6/17 here. Regarding the previously announced restructuring and cost savings program, the company remains on track for >$50mn in total savings. The company continues to target $20mn to $25mn in Phase 1 savings on an annualized basis, which it expects to accelerate in 2H19 and be completed by the end of 2020. KTB projects Phase 2 to begin in 2021 and expects to further leverage improved global processes and systems (planned implementation of a global ERP system), generating additional savings.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 9.4% and a 67.0% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ascena Retail Group.
Kontoor Brands Inc has an analyst consensus of Moderate Buy, with a price target consensus of $34.60, which is a 24.7% 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.
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The company has a one-year high of $41.75 and a one-year low of $26.27. Currently, Kontoor Brands Inc has an average volume of 1.93M.
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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.
