On Friday, May 30, Deutsche Bank resumed coverage of Ralph Lauren Corporation (NYSE:RL), giving a “Buy” rating with a $343 price target. The firm’s analysis highlighted Ralph Lauren Corporation’s strong fundamentals and good growth potential while also pointing out that the company can outperform in many aspects of its business.
A man and woman in business attire walking down a street, bags of clothing in hand.
Deutsche Bank’s analyst, Krisztina Katai, noted that Ralph Lauren Corporation stands out because of its strong underlying fundamentals, efficient pricing power, and a lot of untapped market opportunities. The analyst also mentioned that the company does not depend much on Chinese sources, which is a positive factor. Katai is confident that Ralph Lauren Corporation can gain market share and become more like European luxury brands through strategic growth in different regions, sales channels, and product lines.
The report also noted that the market may not have fully appreciated the transformational changes Ralph Lauren Corporation is making, especially in distribution and sourcing. The company also has opportunities to improve its margins. Katai pointed out that Ralph Lauren Corporation’s valuation remains attractive at about 19 times the estimated EPS for fiscal year 2027, which is based on an expected compound annual growth rate of approximately 11% over three years.
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