Ralph Lauren's Prospects Of Market Share Gains, Margin Expansion Turns This Analyst Bullish

Ralph Lauren Corp (NYSE:RL) is poised for market share gains and margin expansion, given its improving execution and "building momentum within the company's brand elevation strategy," according to Goldman Sachs.

The Ralph Lauren Analyst: Analyst Brooke Roach upgraded the rating from Neutral to Buy, while raising the price target from $280 to $286.

The Ralph Lauren Thesis: There is high visibility into the company's earnings growth ahead, given its "broad-based geographic and category growth opportunity and idiosyncratic drivers of margin expansion," Roach said in the upgrade note.

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Ralph Lauren has lower exposure to near-term macro risks than its peers, such as "tariffs, department store slowdown, and the health of the lower-income consumer," she added.

Improving execution of key strategic initiatives could continue driving earnings growth, the analyst stated.

"More recently, we have seen a pullback in valuations across the apparel sector due to macro uncertainty and market volatility, which we believe presents a buying opportunity for companies demonstrating limited signs of slowdown even amidst an increasingly volatile macro backdrop, such as RL," Roach further wrote.

RL Price Action: Shares of Ralph Laurenhad risen by 0.14% to $220.33 at the time of publication on Tuesday.

Read More: Luxury Fashion House Ralph Lauren Boasts ‘Robust Growth Across All Regions,’ Analyst Initiates Coverage

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