TD Cowen analysts increased their price target for Ralph Lauren (NYSE:RL) from $197 to $202 while maintaining a Buy rating on the stock.
The analysts highlighted that Ralph Lauren continues to achieve margin-accretive growth in its direct-to-consumer (DTC) channel, which accounts for 69% of its sales.
The analysts mentioned Jane Nielsen stepping down as CFO, and emphasizing her effective management that resulted in a mid-teens EBIT margin (excluding foreign exchange impacts) in fiscal 2025 and a 29% return on invested capital (ROIC), with potential for further growth.
The price target has been raised to $202, reflecting confidence that brand elevation can sustain a low-double-digit compound annual growth rate (CAGR) in EPS.