Raymond James initiated coverage of Ralph Lauren (NYSE:RL) with an Outperform rating and a price target of $135 per share. According to the analysts, Ralph Lauren has made significant advancements in recent years, including enhancing its brand image, optimizing wholesale distribution, strengthening its direct-to-consumer (DTC) operations, and boosting gross margin percentages.

The analysts anticipate the company will achieve moderate revenue growth, driven by factors like higher average unit retail prices, increased unit volume in key global markets, and expansion into untapped product categories.

While their revenue projections for fiscal 2024 and 2025 align with market estimates, the analysts are slightly below RL’s target algorithm due to challenging macroeconomic conditions in North America. Nevertheless, the analysts highlighted Ralph Lauren’s cost-saving initiatives and enhanced discipline, which could lead to improved profit margins. With modest expectations for RL and an attractive valuation, Raymond James believes it’s a favorable entry point for investors.

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