- Goldman Sachs analyst Brooke Roach double downgraded Ralph Lauren Corp (NYSE:RL) to Sell from Buy with a price target of $110, down from $142, implying a 5.5% downside.
- The analyst sees "some slowdown in brand health indicators," which she expects will be a headwind to Ralph Lauren's near- and medium-term growth.
- A lack of top-line brand momentum poses a risk to the company's leverage and margin expansion, Roach said.
- The analyst added that Ralph lacks an "idiosyncratic catalyst" as it approaches a tougher demand and cost environment.
- Yesterday, Cowen analyst John Kernan raised the price target on Ralph Lauren to $162 from $154 (suggesting a 39% upside) and kept an Outperform rating.
- The analyst said the stock is relatively cheap with conservative consensus estimates and accelerating data in North America into the holidays.
- Price Action: RL shares are trading lower by 2.63% at $116.93 on the last check Tuesday.
