Kontoor Brands (NYSE:KTB) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Kontoor Brands from strong-buy to hold, though the broader analyst view remains positive with an average rating of Moderate Buy and an average target price of $91.
• The stock fell 5.9% and opened at $73.47, below its 52-week high of $87.00, while the company still sports a market cap of about $4.06 billion and a forward P/E near 14.9.
• Kontoor’s latest quarterly results were mixed: EPS of $1.06 missed estimates, but revenue rose 45% year over year, and management raised full-year guidance while announcing a Lee divestiture and a $750 million share repurchase program.

Kontoor Brands (NYSE:KTB - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a research note issued on Saturday.

Several other research analysts also recently issued reports on the company. Zacks Research raised Kontoor Brands from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 16th. Barclays boosted their target price on shares of Kontoor Brands from $74.00 to $93.00 and gave the company an "overweight" rating in a research note on Wednesday, March 4th. Jefferies Financial Group initiated coverage on shares of Kontoor Brands in a research note on Wednesday, February 4th. They issued a "hold" rating and a $65.00 target price for the company. Wells Fargo & Company boosted their target price on shares of Kontoor Brands from $95.00 to $100.00 and gave the company an "overweight" rating in a research note on Wednesday, March 4th. Finally, The Goldman Sachs Group boosted their target price on shares of Kontoor Brands from $84.00 to $95.00 and gave the company a "buy" rating in a research note on Wednesday, March 4th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $91.00.

Kontoor Brands Trading Down 5.9%

NYSE:KTB opened at $73.47 on Friday. The company has a market capitalization of $4.06 billion, a PE ratio of 14.87 and a beta of 0.91. The company has a quick ratio of 0.87, a current ratio of 1.87 and a debt-to-equity ratio of 1.83. Kontoor Brands has a 52-week low of $53.55 and a 52-week high of $87.00. The stock has a fifty day simple moving average of $71.26 and a 200-day simple moving average of $69.29.

Kontoor Brands (NYSE:KTB - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $1.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.11). The firm had revenue of $613.32 million for the quarter, compared to analyst estimates of $784.76 million. Kontoor Brands had a return on equity of 55.20% and a net margin of 8.81%.The company's quarterly revenue was up 45.0% compared to the same quarter last year. During the same period last year, the firm earned $1.20 EPS. Kontoor Brands has set its FY 2026 guidance at 6.600-6.700 EPS. On average, equities research analysts expect that Kontoor Brands will post 6.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of KTB. Norges Bank acquired a new position in shares of Kontoor Brands during the 4th quarter valued at about $36,185,000. Boston Partners purchased a new stake in shares of Kontoor Brands during the 3rd quarter worth about $44,733,000. JPMorgan Chase & Co. grew its holdings in shares of Kontoor Brands by 15.8% during the 4th quarter. JPMorgan Chase & Co. now owns 3,019,204 shares of the company's stock worth $184,443,000 after purchasing an additional 413,005 shares during the period. Amundi purchased a new stake in shares of Kontoor Brands during the 3rd quarter worth about $24,653,000. Finally, Balyasny Asset Management L.P. grew its holdings in shares of Kontoor Brands by 134.3% during the 2nd quarter. Balyasny Asset Management L.P. now owns 468,630 shares of the company's stock worth $30,916,000 after purchasing an additional 268,604 shares during the period. Institutional investors and hedge funds own 93.06% of the company's stock.

Key Kontoor Brands News

Here are the key news stories impacting Kontoor Brands this week:

• Positive Sentiment: Kontoor reported stronger-than-expected Q1 adjusted earnings and raised its full-year outlook, signaling improving profitability and confidence in the business. Business Wire article
• Positive Sentiment: The company said revenue rose 45% year over year, helped by strong Helly Hansen performance and Wrangler market-share gains, which suggests core brand momentum. Business Wire article
• Positive Sentiment: Management announced a planned divestiture of the Lee brand and a $750 million share repurchase program, moves that could streamline the portfolio and support shareholder returns. Business Wire article
• Neutral Sentiment: Some early coverage emphasized that quarterly revenue missed Wall Street estimates even though earnings beat expectations, which may be limiting enthusiasm. Zacks article

Kontoor Brands Company Profile

Kontoor Brands, Inc is a global apparel company best known for its Wrangler and Lee denim and lifestyle brands. Established as an independent, publicly traded company in May 2019 following a spin-off from VF Corporation, Kontoor leverages a legacy that dates back to 1889 with the founding of Lee and to 1947 with the introduction of the Wrangler brand. The company focuses on designing, manufacturing and distributing premium, casual and workwear apparel, including jeans, pants, shorts, shirts, jackets and complementary accessories.

Kontoor Brands operates a diversified sales model that combines wholesale partnerships with leading retailers, distribution through e-commerce channels and select direct-to-consumer formats.

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