Ralph Lauren: Needham raises Buy rating, PT to $335 from $310.

Tuesday, Aug 5, 2025 6:46 am ET1min read
DB--
JPM--
RL--

Ralph Lauren: Needham raises Buy rating, PT to $335 from $310.

Needham Securities has upgraded its rating for Ralph Lauren (RL) to "Buy" and raised its price target to $335 from the previous $310. The upgrade reflects the firm's positive outlook on the luxury apparel retailer's performance and growth prospects.

According to Needham, Ralph Lauren has demonstrated remarkable momentum, with the stock delivering an 81.35% return over the past year and currently trading near its 52-week high of $306.34. The firm cited strong gross profit margins of 68.55% and consistent earnings beats across regions in fiscal 2024 and 2025 as key drivers of this performance.

Needham's new price target assumes a 21.8x multiple on its two-year forward earnings per share estimate of $15.34, compared to the current next-twelve-months multiple of 20.7x. The stock currently trades at a P/E ratio of 25.34x, which the firm suggests is relatively high compared to its near-term earnings growth potential.

This upgrade comes amidst a wave of positive analyst sentiment for Ralph Lauren. UBS has increased its price target to $385, citing strong first-quarter fundamentals and anticipating an earnings per share beat of approximately 15 cents. Similarly, Deutsche Bank has resumed coverage with a Buy rating and set a price target of $343, emphasizing Ralph Lauren’s strong fundamentals and growth potential. JPMorgan maintained its $355 price target and Overweight rating, noting no signs of softening in any region or channel of the business [1] [2].

In corporate governance news, Ralph Lauren announced Angela Ahrendts as the new Lead Independent Director, succeeding Hubert Joly after his 16 years of service. Ahrendts, who has been on the board since 2018, currently chairs the Finance Committee and serves on other key committees. This strategic leadership change further signals a positive outlook for the company.

References:
[1] https://www.gurufocus.com/news/3015942/ubs-raises-target-on-ralph-lauren-rl-anticipates-strong-q1-performance
[2] https://ca.investing.com/news/analyst-ratings/telsey-raises-ralph-lauren-stock-price-target-to-335-on-brand-momentum-93CH-4134945

Comments



Add a public comment...
No comments

No comments yet