B of A Securities Downgrades PVH Outlook from Buy to Neutral

A recent report reveals B of A Securities downgraded PVH's outlook while predicting a potential price increase. Analysts forecast a revenue growth of 7.76% and a non-GAAP EPS of 10.91, amid changes in institutional holdings.

Date: 03-10-2024

AI Rating: 6

The recent downgrade of PVH's outlook from Buy to Neutral by B of A Securities suggests mixed sentiments in the market.

Despite the downgrade, the report highlights a projected revenue growth of 7.76%, forecasting annual revenue at 9,568MM. This revenue increase can be a positive signal for investors, indicating the company may still be on a favorable growth path.

Moreover, a projected non-GAAP EPS of 10.91 could draw attention, as EPS is a critical measure of profitability. This speaks to the company’s potential earnings efficiency and could help maintain investor interest despite the downgrade.

On the other hand, the average price target for PVH suggests a potential upside of 28.35% from its closing price of 100.84 GBX. This upside, indicated by a range from a low of 101.20 GBX to a high of 183.06 GBX, implies that the stock still holds promise for significant returns, despite the recent rating change.

Additionally, the analysis shows an increase in institutional ownership, with a growth of 2.15% in total shares owned by institutions, which suggests continued institutional confidence in PVH. However, the specific changes in ownership percentages by various funds indicate some volatility in fund allocations towards the stock.

In summary, while the downgrade presents a cautionary note, the favorable revenue projections, positive EPS outlook, and possible upside in price targets mitigate some concerns, which could stabilize PVH's stock price in the short term.

Stocks: PVH