Wall Street Zen Upgrades Kontoor Brands (NYSE:KTB) to Strong-Buy

Key Points

• Kontoor Brands (NYSE: KTB) was upgraded from a "hold" to a "strong-buy" rating by Wall Street Zen, reflecting increased analyst confidence in the company's performance.
• The company recently reported earnings of $1.21 EPS, exceeding estimates, and revenue of $658.26 million, marking an 8.5% year-over-year increase.
• Various analysts have set target prices ranging from $73.00 to $99.00, with a consensus target of $89.67 among those tracking the stock.

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

KTB has been the subject of a number of other research reports. UBS Group lifted their target price on Kontoor Brands from $92.00 to $99.00 and gave the stock a "buy" rating in a report on Friday. Barclays increased their price target on Kontoor Brands from $86.00 to $91.00 and gave the stock an "overweight" rating in a research report on Friday. The Goldman Sachs Group set a $85.00 price objective on Kontoor Brands and gave the stock a "buy" rating in a research note on Tuesday, June 10th. Stifel Nicolaus raised their price objective on Kontoor Brands from $72.00 to $73.00 and gave the company a "hold" rating in a research report on Friday. Finally, Wells Fargo & Company raised their price objective on Kontoor Brands from $85.00 to $90.00 and gave the company an "overweight" rating in a research report on Wednesday, May 14th. One equities research analyst has rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $89.67.

Kontoor Brands Stock Performance

Shares of NYSE KTB traded up $2.95 during trading on Friday, hitting $70.21. The company had a trading volume of 762,981 shares, compared to its average volume of 739,441. The stock has a 50 day simple moving average of $65.02 and a 200 day simple moving average of $67.66. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.95 and a current ratio of 2.18. Kontoor Brands has a 12 month low of $50.00 and a 12 month high of $96.80. The firm has a market capitalization of $3.90 billion, a P/E ratio of 15.67, a price-to-earnings-growth ratio of 1.55 and a beta of 1.11.

Kontoor Brands (NYSE:KTB - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.35. The company had revenue of $658.26 million for the quarter, compared to the consensus estimate of $632.97 million. Kontoor Brands had a return on equity of 68.76% and a net margin of 9.48%. The firm's quarterly revenue was up 8.5% on a year-over-year basis. During the same quarter last year, the company earned $0.98 EPS. As a group, analysts anticipate that Kontoor Brands will post 4.82 earnings per share for the current year.

Hedge Funds Weigh In On Kontoor Brands

Institutional investors have recently added to or reduced their stakes in the stock. Atlantic Union Bankshares Corp purchased a new position in Kontoor Brands during the second quarter worth approximately $26,000. CX Institutional purchased a new stake in Kontoor Brands in the first quarter valued at $32,000. Ameritas Advisory Services LLC acquired a new position in Kontoor Brands during the second quarter worth $35,000. Versant Capital Management Inc raised its holdings in shares of Kontoor Brands by 46.7% in the 1st quarter. Versant Capital Management Inc now owns 650 shares of the company's stock valued at $42,000 after buying an additional 207 shares during the period. Finally, Quarry LP raised its holdings in shares of Kontoor Brands by 161.3% in the 4th quarter. Quarry LP now owns 729 shares of the company's stock valued at $62,000 after buying an additional 450 shares during the period. Hedge funds and other institutional investors own 93.06% of the company's stock.

Kontoor Brands Company Profile

Kontoor Brands, Inc, a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name.