

The deep research logic is organized as follows:
Okay, let's tackle the question: "Is PVH a buy?" First, I need to gather all the relevant data from the provided references.
Starting with the consensus rating and price targets. Reference 1 shows that PVH has a Neutral consensus rating with an average price target of $97.75. The current price is around $66.97, which is significantly below the target, suggesting upside potential. However, the consensus is Neutral, which is a bit cautious.
Looking at recent analyst actions, References 5, 6, 7, 8, and 9 mention several downgrades and target cuts. BMO Capital lowered the target to $84 from $93, Wells Fargo to $80, and Evercore ISI to $95. Telsey Advisory Group maintained an Outperform rating with a $90 target. The average target is $97.75, but there's a mix of downgrades and some stability in ratings. The number of Buy vs Hold/Sell recommendations isn't clear from the provided data, but the consensus is Neutral.
Financial performance from References 11, 12, 13, 14, 15, 16, 17, 18, and 20 shows mixed results. Q1 2025 revenue beat estimates with a 1.6% YoY increase, but net losses occurred due to higher expenses. The operating margin turned negative, which is concerning. However, the company has a low debt-to-equity ratio and positive cash flow, indicating financial stability. The P/E ratio is low, suggesting undervaluation, but the stock has underperformed the market this year.
Market context from References 2, 3, 4, and 14 mentions ongoing tariff issues affecting the market, cautious earnings estimates, and upcoming economic data. PVH's reliance on international markets, especially China, makes it vulnerable to trade tensions. The company's brands like Calvin Klein and Tommy Hilfiger are strong, but competition and consumer sentiment are factors.
Putting it all together: PVH has a Neutral consensus with a high average price target, recent downgrades, mixed financials, and sector-specific risks. The stock seems undervalued but faces execution risks. The balance between upside potential and cautionary signals suggests a Hold rating, but with a note on upside if the company can improve margins and manage tariffs.
Conclusion 🎯
PVH (NYSE:PVH) is a Hold stock with mixed signals from recent financials and analyst activity. While the stock is undervalued based on its low P/E ratio and strong brand portfolio, concerns over operational challenges, margin contraction, and macroeconomic risks (e.g., tariffs) temper the bullish case. The average price target of $97.75 suggests upside potential (~46% from the current price of $66.97), but the Neutral consensus rating reflects uncertainty about near-term execution.
Analysis 📊
1. Valuation & Financial Health
PVH trades at a P/E ratio of 6.97, significantly below the industry average (76.59) and the S&P 500 (25.91) 1. This undervaluation is supported by:
- Gross Margin: 59.43% (industry-leading) 23.
- Debt-to-Equity Ratio: 0.31 (low leverage) 41.
- Free Cash Flow Yield: 19% (healthy liquidity) 1.
However, the company reported a net loss of $44.8 million in Q1 2025, driven by operating margin contraction (-16.7%) and higher SG&A expenses 35.
Metric | PVH (Q1 2025) | Industry Average |
---|---|---|
P/E Ratio | 6.97 | 76.59 |
Debt-to-Equity Ratio | 0.31 | 0.50 |
Gross Margin | 59.43% | 45.00% |
Operating Margin | -16.7% | 5.00% |
2. Analyst Sentiment
- Consensus Rating: Neutral 67.
- Price Targets:
Analyst Price Target Rating BMO Capital $84 Market Perform Wells Fargo $80 Equal-Weight Evercore ISI $95 Outperform Telsey Advisory $90 Outperform Average $97.75 -
Recent downgrades (e.g., BMO, Wells Fargo) reflect concerns over margin pressures and guidance cuts 28. However, Telsey Advisory reaffirmed its Outperform rating 9.
3. Risks & Catalysts
-
Risks:
- Tariffs: PVH’s reliance on international markets (e.g., China) exposes it to trade-related disruptions 1011.
- Competition: Pressure from fast fashion brands (e.g., Zara, H&M) could erode market share 3.
- Margin Volatility: Q1 gross margin contracted by 285 basis points due to promotions and freight costs 2.
-
Catalysts:
- Brand Strength: Calvin Klein and Tommy Hilfiger remain iconic, with potential for licensing deals and digital transformation 125.
- Cost Savings: The company aims to achieve $500 million in savings by 2027 via its Growth Driver 5 initiative 3.
Conclusion 🎯
PVH is a Hold with high upside potential (~46%) but execution risks. The stock is undervalued, but near-term challenges (e.g., margin contraction, tariffs) warrant caution. Investors should monitor Q2 earnings (due June 2025) for clarity on cost-saving progress and gross margin recovery.
