UBS Group Issues Positive Forecast for Ralph Lauren (NYSE:RL) Stock Price

Key Points

• UBS Group has raised its target price for Ralph Lauren (NYSE:RL) from $385.00 to $404.00, indicating a potential upside of 38.63% from its current price, and maintains a "buy" rating.
• The company reported $3.77 EPS, exceeding analysts' expectations, with a quarterly revenue increase of 13.7% year-over-year.
• Ralph Lauren's board has approved a stock buyback program of up to $1.50 billion, signaling confidence in the company's valuation.

Ralph Lauren (NYSE:RL - Get Free Report) had its price objective upped by UBS Group from $385.00 to $404.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the textile maker's stock. UBS Group's price target would suggest a potential upside of 39.92% from the company's current price.

A number of other research analysts also recently weighed in on the company. Wall Street Zen downgraded Ralph Lauren from a "buy" rating to a "hold" rating in a report on Tuesday, May 6th. Cfra Research downgraded Ralph Lauren from a "hold" rating to a "moderate sell" rating in a research note on Tuesday, May 20th. Evercore ISI upped their price target on Ralph Lauren from $320.00 to $335.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Telsey Advisory Group upped their price target on Ralph Lauren from $315.00 to $335.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. Finally, Citigroup upped their price target on Ralph Lauren from $250.00 to $295.00 and gave the stock a "neutral" rating in a research note on Friday, May 23rd. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $306.41.

Ralph Lauren Stock Up 0.2%

Shares of RL stock traded up $0.48 during midday trading on Friday, reaching $288.74. 76,184 shares of the stock were exchanged, compared to its average volume of 877,603. Ralph Lauren has a 1 year low of $157.84 and a 1 year high of $306.34. The company's 50 day moving average is $282.43 and its two-hundred day moving average is $256.51. The company has a current ratio of 1.84, a quick ratio of 1.30 and a debt-to-equity ratio of 0.58. The firm has a market cap of $17.42 billion, a PE ratio of 23.05, a price-to-earnings-growth ratio of 2.06 and a beta of 1.53.

Ralph Lauren (NYSE:RL - Get Free Report) last posted its earnings results on Thursday, August 7th. The textile maker reported $3.77 earnings per share for the quarter, topping analysts' consensus estimates of $3.50 by $0.27. Ralph Lauren had a return on equity of 33.72% and a net margin of 10.91%. The firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter in the prior year, the business earned $2.70 EPS. The business's revenue for the quarter was up 13.7% on a year-over-year basis. On average, equities research analysts predict that Ralph Lauren will post 12.01 EPS for the current year.

Ralph Lauren declared that its board has initiated a share buyback program on Thursday, May 22nd that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the textile maker to purchase up to 8.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Ralph Lauren

A number of institutional investors and hedge funds have recently modified their holdings of the company. Hantz Financial Services Inc. lifted its position in Ralph Lauren by 1,228.6% during the second quarter. Hantz Financial Services Inc. now owns 93 shares of the textile maker's stock valued at $26,000 after purchasing an additional 86 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its position in shares of Ralph Lauren by 93.7% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 122 shares of the textile maker's stock valued at $27,000 after purchasing an additional 59 shares during the period. Sentry Investment Management LLC raised its position in shares of Ralph Lauren by 178.0% during the 1st quarter. Sentry Investment Management LLC now owns 139 shares of the textile maker's stock valued at $31,000 after purchasing an additional 89 shares during the period. First Horizon Advisors Inc. raised its position in shares of Ralph Lauren by 69.7% during the 2nd quarter. First Horizon Advisors Inc. now owns 151 shares of the textile maker's stock valued at $41,000 after purchasing an additional 62 shares during the period. Finally, Banque Transatlantique SA bought a new stake in shares of Ralph Lauren during the 1st quarter valued at $33,000. 67.91% of the stock is currently owned by hedge funds and other institutional investors.

About Ralph Lauren

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.