A Look at Kontoor Brands’s Valuation Following Strong Q3 Results and Upgraded Outlook

Kontoor Brands (KTB) delivered strong third quarter results, with revenue surging due to contributions from Helly Hansen and continued momentum in Wrangler. Management raised full-year guidance and implemented a 2% dividend increase, highlighting ongoing operational strength.

See our latest analysis for Kontoor Brands.

KTB’s share price has rebounded sharply in recent months, climbing more than 20% over the last 90 days after a challenging year. While the 12-month total shareholder return is still negative, long-term investors have seen a remarkable 140% total return over three years, reflecting growing confidence in the company’s expanded portfolio and operational momentum.

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With shares now trading about 18% below analyst targets after a sharp rally, the question for investors is clear: does Kontoor remain undervalued, or are expectations for future growth already reflected in today’s price?

Most Popular Narrative: 14.4% Undervalued

At $76.86, Kontoor Brands trades well below the widely-followed narrative's fair value of $89.75. This sets the stage for bold growth expectations and a potentially overlooked opportunity. Here is a direct look at what is fueling this confidence.

The integration of Helly Hansen is providing Kontoor Brands with strong momentum and unlocking significant top-line growth opportunities in the U.S. The company is also seeing deeper product innovation and category expansion, which are key factors expected to drive international revenue growth and capitalize on the rising global middle class to support future revenue acceleration.

Read the complete narrative.

Want to see the hidden engine powering this double-digit upside? The most-followed narrative is built around ambitious forecasts for revenue momentum, margin shifts, and valuation resets. Think you know what assumptions push this valuation sky-high? Dive in to uncover the surprising details that separate bulls from skeptics.

Result: Fair Value of $89.75 (UNDERVALUED)

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

However, continued reliance on legacy brands and uncertainties around integrating Helly Hansen could quickly challenge today’s upbeat outlook if execution falters.

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

Build Your Own Kontoor Brands Narrative

If you have a different perspective or want to dive deeper into the numbers, you can quickly create your own Kontoor Brands narrative in just a few minutes. Do it your way

A great starting point for your Kontoor Brands research is our analysis highlighting 2 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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