Ralph Lauren (NYSE:RL) Earns Buy Rating from Needham & Company LLC

Key Points

• Needham & Company LLC has raised the price target for Ralph Lauren from $310 to $335, indicating a potential upside of 10.17% based on the last closing price.
• The consensus rating for Ralph Lauren among analysts stands at "Moderate Buy" with an average target price of $303.
• Ralph Lauren recently announced a share repurchase program of $1.50 billion, suggesting the company's leadership believes their shares are currently undervalued.

Ralph Lauren (NYSE:RL - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Needham & Company LLC in a note issued to investors on Tuesday, MarketBeat.com reports. They presently have a $335.00 price objective on the textile maker's stock, up from their prior price objective of $310.00. Needham & Company LLC's target price would suggest a potential upside of 11.73% from the company's previous close.

A number of other brokerages have also commented on RL. Cfra Research lowered Ralph Lauren from a "hold" rating to a "moderate sell" rating in a research note on Tuesday, May 20th. The Goldman Sachs Group raised their price target on shares of Ralph Lauren from $262.00 to $324.00 and gave the company a "buy" rating in a research note on Friday, May 23rd. Cowen reaffirmed a "buy" rating on shares of Ralph Lauren in a report on Thursday, May 22nd. BMO Capital Markets increased their price target on Ralph Lauren from $197.00 to $205.00 and gave the company an "underperform" rating in a research note on Friday, May 23rd. Finally, Jefferies Financial Group lifted their price objective on Ralph Lauren from $250.00 to $328.00 and gave the stock a "buy" rating in a research note on Friday, May 23rd. One analyst has rated the stock with a sell rating, three have given a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $303.00.

Ralph Lauren Stock Performance

NYSE RL opened at $299.83 on Tuesday. The firm has a 50-day moving average price of $281.71 and a two-hundred day moving average price of $255.56. Ralph Lauren has a 12-month low of $156.69 and a 12-month high of $306.34. The company has a market capitalization of $18.09 billion, a P/E ratio of 25.83, a P/E/G ratio of 2.24 and a beta of 1.53. The company has a quick ratio of 1.33, a current ratio of 1.78 and a debt-to-equity ratio of 0.38.

Ralph Lauren (NYSE:RL - Get Free Report) last announced its quarterly earnings data on Thursday, May 22nd. The textile maker reported $2.27 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.27. Ralph Lauren had a return on equity of 31.76% and a net margin of 10.49%. The business had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.64 billion. During the same period in the prior year, the company earned $1.71 EPS. Ralph Lauren's revenue for the quarter was up 8.3% on a year-over-year basis. Analysts anticipate that Ralph Lauren will post 12.01 earnings per share for the current year.

Ralph Lauren announced that its board has initiated a stock repurchase plan on Thursday, May 22nd that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the textile maker to reacquire up to 8.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's management believes its stock is undervalued.

Institutional Trading of Ralph Lauren

Institutional investors and hedge funds have recently modified their holdings of the stock. Hantz Financial Services Inc. increased its stake in Ralph Lauren by 1,228.6% in the 2nd quarter. Hantz Financial Services Inc. now owns 93 shares of the textile maker's stock valued at $26,000 after buying an additional 86 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its position in shares of Ralph Lauren by 93.7% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 122 shares of the textile maker's stock valued at $27,000 after acquiring an additional 59 shares during the last quarter. Sentry Investment Management LLC lifted its holdings in Ralph Lauren by 178.0% during the first quarter. Sentry Investment Management LLC now owns 139 shares of the textile maker's stock worth $31,000 after acquiring an additional 89 shares during the period. Banque Transatlantique SA bought a new stake in Ralph Lauren during the first quarter worth $33,000. Finally, Brooklyn Investment Group boosted its position in Ralph Lauren by 180.3% in the first quarter. Brooklyn Investment Group now owns 171 shares of the textile maker's stock worth $38,000 after purchasing an additional 110 shares during the last quarter. 67.91% of the stock is owned by hedge funds and other institutional investors.

Ralph Lauren Company Profile

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances.