Apparel maker PVH (PVH) is sinking 5% after JPMorgan downgraded the shares to Neutral from Overweight. The bank also slashed its price target on the name to $113 from $149.
Why JPMorgan Cut Its Rating on PVH
The company’s sales are likely to rise more slowly than anticipated, while it will take the firm a long time to reach its goal of increasing its operating margin to around 15%, the bank warned. JPMorgan now expects the firm’s revenue to fall 1.4% during its current fiscal year.
Shutterstock.com
Other factors that could hurt PVH going forward are price cuts by its competitors, tariffs, foreign exchange rate changes, and macroeconomic problems, according to JPMorgan.
Positive Aspects of PVH Stock
PVH can boost its brands over the long term by improving its designs and marketing efforts, JPMorgan asserted. Additionally, the bank is generally upbeat on the apparel maker’s new management team.
More Information About PVH
Analysts on average expect the firm’s earnings per share to climb to $11.71 in 2025 from $10.68 last year.
The shares now trade at a forward price-to-earnings multiple of just 7.75 times.
In the last month, PVH has sunk 15%, but it’s down just 1.8% during the last three months.
READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
This article is originally published at Insider Monkey.
