Ralph Lauren's analyst price target has been raised modestly, reflecting a $2.18 increase to $354.11. Analysts cite ongoing demand momentum, brand strength, and positive growth outlooks for the company.

Analyst Commentary

Recent updates from major sell-side firms highlight continued optimism surrounding Ralph Lauren, with several price target increases reflecting constructive views on the company's fundamentals and future prospects.

• Bullish analysts are raising price targets due to ongoing demand momentum, particularly in North America, and clear visibility into top-line growth potential.
• Positive execution on the company’s multi-year brand elevation and growth strategy is being credited for strong financial performance and premium valuation.
• The company is regarded as one of the most stable and best-managed businesses in global softlines retail, with strengths in merchandising, direct-to-consumer, and consistent return on invested capital.
• Recent public moments, such as celebrity endorsements, have further reinforced the brand’s relevance and ongoing momentum in the marketplace.

• Bearish analysts note that despite operational momentum, some of the company’s multi-year growth targets and guidance remain conservative.
• There have been a few modest price target reductions amid concerns that the pace of upside in margin and revenue growth may begin to slow.
• Uncertainties about the broader retail environment are prompting some caution regarding the sustainability of recent performance and the potential for further revaluation higher.

What's in the News

• Ralph Lauren announced it will open The Polo Bar Ralph Lauren in London at 1 Hanover Square in 2028. This move expands its hospitality portfolio in the United Kingdom. (Key Developments)
• The company reiterated its Fiscal 2026 guidance as stated on its August 7th, 2025 earnings call. (Key Developments)
• Earnings guidance for the second quarter of 2026 was provided. Revenue is expected to grow by high-single digits, and operating margin is set to expand by 120 to 160 basis points on a constant currency basis, driven by operating expense leverage. (Key Developments)
• Between March 30 and June 28, 2025, Ralph Lauren repurchased 1,162,254 shares for $250.07 million. This completed the repurchase of 34.1% of shares originally announced in 2018. (Key Developments)
• Full fiscal year 2026 guidance was raised. Revenues are now expected to increase by low- to mid-single digits, and operating margin is projected to expand by 40 to 60 basis points on a constant currency basis, mainly from operating expense leverage. (Key Developments)

Valuation Changes

• Fair Value Estimate has increased modestly from $351.94 to $354.11.
• Discount Rate has decreased slightly from 8.87% to 8.85%.
• Revenue Growth projection has risen marginally from 5.08% to 5.12%.
• Net Profit Margin estimate has improved fractionally from 12.36% to 12.37%.
• Future P/E Ratio is up slightly from 24.34x to 24.43x.