PVH Corp. Price Target Raised to $148 by UBS Analysts.

UBS raised PVH Corp.'s price target to $148 from $146, maintaining a Buy rating on the shares. The company's strong brand and balance sheet enable earnings growth despite macro headwinds.

UBS has elevated its price target for PVH Corp. (PVH) to $148, up from $146, while maintaining a Buy rating on the shares. The positive move follows the company's better-than-expected second-quarter financial results, which saw a 4% revenue growth and an adjusted earnings per share (EPS) of $2.52, surpassing analyst estimates [1].

The UBS analyst, Jay Sole, highlighted PVH's robust performance, driven by the success of its Calvin Klein and Tommy Hilfiger brands. Despite challenges such as tariffs and higher freight costs, PVH managed to achieve a gross margin of 57.7%, albeit slightly lower than the previous year's 60.1% [1]. PVH's CEO, Stefan Larsson, underscored the company's disciplined execution of its PVH+ Plan, which leverages the iconic brand strength of its key brands.

UBS expects PVH to deliver a double-digit EPS compound annual growth rate for the long term post fiscal 2025. The company's strong cash flow is anticipated to encourage stock buybacks, while its license take-back with G-III Apparel Group (GIII) is expected to continue through fiscal 2026, contributing to gross margin benefits [2].

The analyst's positive sentiment is echoed by other firms. Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating and raised the price target to $95 [2]. Despite near-term stock weakness, PVH's long-term trajectory shows resilience, with a 48.52% five-year return [1].

Investors should continue to monitor PVH's progress as it navigates through macroeconomic uncertainty and focuses on long-term growth initiatives. The company's ability to manage margin pressures and maintain brand desirability will be key factors in determining its future performance.

References:
[1] https://coincentral.com/pvh-corp-pvh-stock-q2-earnings-beat-with-revenue-growth-outlook-raised/
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/47386335/pvh-analysts-boost-their-forecasts-after-upbeat-q2-results