A Look at Kontoor Brands’s (KTB) Valuation Following Upgraded 2025 Revenue Guidance and Recent Earnings Update

Kontoor Brands (KTB) has just reported its third quarter results and raised both full-year and fourth quarter revenue guidance. The updated outlook comes as investors focus on growth expectations and recent acquisitions.

See our latest analysis for Kontoor Brands.

Kontoor Brands' latest earnings and upbeat guidance have caught the market’s eye, but recent price action hints at shifting sentiment. While the company reported solid revenue growth and completed a notable acquisition, its share price has slipped 14.9% over the past month and is down 15.4% year-to-date. That said, long-term total shareholder returns remain impressive, up 87% over three years and more than doubling over five years. This suggests momentum may be gathering again as the business focuses on growth opportunities.

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With the stock trading well below analyst targets and new growth on the horizon, investors must ask whether Kontoor Brands is offering a rare value opportunity or if expectations for a strong 2025 are already factored into the price.

Most Popular Narrative: 21.4% Undervalued

With Kontoor Brands last closing at $71.91, the most widely followed narrative pegs its fair value much higher, pointing to significant upside from current levels. The narrative builds its case on top-line momentum, integration benefits from the Helly Hansen deal, and a sharp focus on margin improvement.

The integration of Helly Hansen is providing Kontoor Brands with strong momentum and unlocking significant top-line growth opportunities in the U.S. (through underpenetrated wholesale and retail channels), deeper product innovation, and category expansion. These are key levers expected to drive international revenue growth and capitalize on the rising global middle class, supporting future revenue acceleration.

Read the complete narrative.

Curious how analysts justify this bullish target? Their valuation leans on bold expectations for accelerating revenue, expanding margins, and a future earnings multiple that challenges current market norms. There's plenty behind the numbers that may surprise you. Dive in to uncover the quantitative drivers shaping this upside call.

Result: Fair Value of $91.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent challenges facing the Lee brand or a major shift in consumer preferences could quickly undermine the current optimism surrounding Kontoor’s growth story.

Find out about the key risks to this Kontoor Brands narrative.

Build Your Own Kontoor Brands Narrative

If you want a second opinion or would rather dig into the figures on your own, you can easily craft your own take and share it in just a few minutes as well. Do it your way

A great starting point for your Kontoor Brands research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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