Needham Initiates Coverage of PVH (PVH) Stock with Buy Rating

On May 30, Needham initiated coverage on PVH Corp. (NYSE:PVH)’s stock with a “Buy” rating and a price objective of $115, as reported by The Fly.

A customer trying on a sports jacket in-store, showcasing the company’s sportswear range.

The analysts hinted at several underappreciated EPS drivers that they believe are expected to contribute to PVH Corp. (NYSE:PVH)’s performance over the upcoming few years. As per the analyst, in FY 2026 and FY 2027, there are expectations of over $1.00 in EPS accretion as a result of taking the G-III licenses in-house, which is presently not being considered in estimates.

Also, the firm’s analysts mentioned PVH Corp. (NYSE:PVH)’s emphasis on cost-efficiency, specifying that the benefits have been overshadowed by sales-related deleverage. The firm also highlighted the low tariff risk associated with PVH Corp. (NYSE:PVH). For FY 2025, the company projects operating margin to be flat-to-increase slightly on a non-GAAP basis as compared to 10.0% on a non-GAAP basis in 2024. The operating margin on a GAAP basis came in at 8.9% in 2024.

In North America, PVH Corp. (NYSE:PVH), which operates as an apparel company, plans to continue to drive a double-digit EBIT margin. In Europe, its Fall 2025 order books are back to growth, and in Asia Pacific, the company plans to continue to focus on fueling healthy consumer engagement throughout its diversified business.

While we acknowledge the potential of PVH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than PVH and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None.