Ralph Lauren Corporation (NYSE:RL) Released Earnings Last Week And Analysts Lifted Their Price Target To US$300

Last week saw the newest full-year earnings release from Ralph Lauren Corporation (NYSE:RL), an important milestone in the company's journey to build a stronger business. Ralph Lauren reported in line with analyst predictions, delivering revenues of US$7.1b and statutory earnings per share of US$11.61, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Ralph Lauren's 16 analysts is for revenues of US$7.39b in 2026. This would reflect a modest 4.4% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 12% to US$13.77. Before this earnings report, the analysts had been forecasting revenues of US$7.31b and earnings per share (EPS) of US$13.55 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Ralph Lauren

The consensus price target rose 8.8% to US$300despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Ralph Lauren's earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ralph Lauren, with the most bullish analyst valuing it at US$384 and the most bearish at US$165 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Ralph Lauren's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2026 being well below the historical 7.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Ralph Lauren.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ralph Lauren's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ralph Lauren going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.