PVH Stock Underpriced Despite Strong Q2 Results, Analyst Says Buy

Analyst Tom Nikic of Needham maintains a Buy rating on PVH with a $100 price target, citing the stock as undervalued despite strong Q2 performance. PVH's revenue growth met expectations, and EPS surpassed guidance. Although the company anticipates a slight revenue decline in the next quarter, the overall fundamentals suggest the stock is unjustly cheap, justifying the Buy rating.

PVH Corp. (NYSE: PVH), the parent company of Calvin Klein and Tommy Hilfiger, reported robust financial results for the second quarter of 2025, surpassing Wall Street expectations. The company announced earnings per share (EPS) of $2.52, significantly above the forecasted $2.00, marking a 26% surprise. Revenue reached $2.17 billion, topping the $2.12 billion forecast, which represents a 2.36% surprise. Following the announcement, PVH’s stock rose by 4.21% in pre-market trading, reflecting investor confidence in the company’s performance and outlook [3].

Despite the strong performance, the stock has underperformed in 2025. Year-to-date, the stock is down 23.14%, versus a 10.08% gain for the S&P 500. Over a one-year horizon, PVH has lost 22.13% compared with a 15.09% rise in the benchmark. However, its longer-term trajectory shows resilience, with a 48.52% five-year return [1].

Analyst Tom Nikic of Needham maintained a Buy rating on PVH, retaining the price target of $100.00. Nikic cited the stock as undervalued despite the company’s Q2 performance exceeding expectations. Although the company’s revenue growth for the quarter was consistent with expectations, its earnings per share significantly surpassed guidance. The stock appears undervalued, trading at a low multiple of its estimated future earnings. Nikic believes that if PVH can improve its fundamentals, there is a significant opportunity for the stock to be re-rated, justifying the Buy rating [2].

PVH Corp. delivered a solid Q2 earnings beat, powered by Calvin Klein and Tommy Hilfiger, while managing through margin pressures. The company reaffirmed its full-year earnings guidance and raised its revenue forecast to low single-digit growth. Despite revenue gains, profitability pressures persisted, with gross margin declining to 57.7% from 60.1% a year ago. The company expects a slight revenue decline in the upcoming quarter but remains optimistic about its strategic initiatives and brand strength [1].

References:

[1] https://coincentral.com/pvh-corp-pvh-stock-q2-earnings-beat-with-revenue-growth-outlook-raised/
[2] https://www.tipranks.com/news/ratings/pvh-stock-undervalued-despite-strong-q2-performance-buy-rating-justified-ratings
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-pvh-corp-q2-2025-beats-expectations-stock-surges-93CH-4213006