JPMorgan Raises Ralph Lauren (RL) Price Target, Keeps Overweight Rating

Yahoo

24-05-2025

On Thursday, May 22, JPMorgan analyst Matthew Boss kept an 'Overweight' rating and raised the price target for Ralph Lauren Corporation (NYSE:RL) to $355 from $342.
According to Boss, the company has not seen any slowdown globally through May. Ralph Lauren Corporation (NYSE:RL) has also reported no cancellations from wholesale partners so far.
A man and woman in business attire walking down a street, bags of clothing in hand.
Despite this, the company's forecast for the second half of fiscal 2026 is conservative. Ralph Lauren Corporation (NYSE:RL) expects revenue growth to moderate by about 10 percentage points. North America is projected to experience a mid-single-digit decline, which contrasts with the earlier positive growth. Europe is expected to grow at a low-single-digit rate, down from the mid-teens growth experienced in the previous quarters.
Regarding earnings, Boss pointed out that the management's preliminary guidance for fiscal 2026 includes a headwind of more than 100 basis points from tariffs. However, Ralph Lauren Corporation (NYSE:RL) is exploring potential actions to offset this impact, which could lead to better results than the current guidance. Boss also noted a potential upside scenario where the stock's value could go above $400.
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