Analysts have increased their price target for Ralph Lauren by nearly $1 to $366.75, citing robust brand momentum, improved sales growth, and expanding profit margins as key drivers supporting the positive outlook.
Analyst Commentary
Recent coverage from Wall Street has highlighted both the strengths and potential headwinds facing Ralph Lauren as price targets are updated across the sector.
Bullish Takeaways- Bullish analysts see robust brand momentum across all geographies, supporting higher earnings and improved valuation multiples.
- There is growing confidence in Ralph Lauren’s ability to expand profit margins, with recent quarterly performance driving upward revisions to longer-term earnings forecasts.
- The company’s multi-year brand elevation and growth strategy are viewed as effective and provide consistent top and bottom line opportunities for further expansion.
- Management’s messaging and recent investor meetings have conveyed broad-based demand momentum, particularly in North America, which increases confidence in execution capability.
- Bearish analysts remain cautious and describe the company’s multi-year growth and operating margin targets as conservative, which could potentially limit upside surprises.
- Some see the medium-term guidance as incorporating a degree of conservatism and raise questions regarding the pace of future growth acceleration.
- A recent downward adjustment to at least one price target indicates underlying concerns about the risk of execution in a competitive and unpredictable retail environment.
What's in the News
- Ralph Lauren launched the Polo Ralph Lauren x TOPA collection, the fourth project in its Artist in Residence program. The initiative celebrates cultural heritage through collaboration with Indigenous-led brand TOPA and supports Lakota language immersion efforts. (Key Developments)
- The company provided updated earnings guidance for Fiscal 2026. It expects revenue to increase 5% to 7% on a constant currency basis, with foreign currency providing an additional boost. (Key Developments)
- Between late September and early November 2025, Ralph Lauren repurchased 218,554 shares valued at $63.16 million. This completes a buyback that now totals 34.46% of outstanding shares since 2018. (Key Developments)
- Ralph Lauren will open The Polo Bar Ralph Lauren restaurant in London at 1 Hanover Square, scheduled for 2028. This continues the expansion of its hospitality offerings internationally. (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly, moving from $365.87 to $366.75 per share.
- Discount Rate has increased marginally and is now at 8.92% compared to 8.91% previously.
- Revenue Growth projection has improved, with expectations rising from 4.64% to 5.14%.
- Net Profit Margin is projected to increase modestly, up from 12.60% to 12.72%.
- Future P/E Ratio is nearly unchanged, with a slight decrease from 24.20x to 24.15x.
Disclaimer
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