Piper Jaffray analyst Erinn Murphy reiterated a Buy rating on PVH (NYSE: PVH) yesterday and set a price target of $109. The company’s shares opened today at $107.99.
Murphy said, “We are maintaining our OW rating on PVH ahead of its Q2 print slated for August 24th. Recall last quarter, in what we would describe as an even more challenging environment, not only did sales and earnings exceed expectations but Q2 guidance was issued ahead of Street estimates. In addition, management was particularly bullish at our Consumer Conference in mid-June, indicating on-going strength in Europe and positive wholesale comps domestically. For Q2, we are at the high end of the range (PJC & Street: $1.29; Guide: $1.25-$1.30) and FY guidance stands at $6.45-$6.55 (PJC: $6.56). We believe Q2 is likely beatable and believe 2H estimates are conservative. CKU was called out positively on URBN’s call this week. On PVH’s call, we would anticipate learning more about the new creative direction of the CK brand under Raf Simons, TH women’s wholesale transition with GIII, and TH’s Fall Collaboration with Gigi Hadid. Expecting Solid Q2; Upward Bias Remains On Ests.: For Q2, we are at the high-end of the range (PJC & Street: $1.29; Guide: $1.25-$1.30) and FY guidance stands at $6.45- $6.55 (PJC: $6.56). Though PVH has department store exposure, earnings for these retailers have not been as bad as anticipated as of yet. In addition, we note that PVH has planned conservatively, and has not back-end weighted the year as some of our space appears to have done. Our Q2 gross margin stands at 54.0% (or up 80 bps Y/Y) on $1,930M of sales (up 3.5% Y/Y). We believe our GM est. for Q2 could be conservative. For Q3, we are at $2.41 vs. the Street’s $2.39 on sales that are essentially flat.”
According to TipRanks.com, Murphy is ranked 0 out of 5 stars with an average return of -9.3% and a 36.9% success rate. Murphy covers the Consumer Goods sector, focusing on stocks such as Wolverine World Wide, G-III Apparel Group, and Ralph Lauren Corp.
Currently, the analyst consensus on PVH is Strong Buy and the average price target is $112.25, representing a 3.9% upside.
In a report issued on August 16, Deutsche Bank also maintained a Buy rating on the stock with a $117 price target.
The company has a one year high of $120.67 and a one year low of $64.16. Currently, PVH has an average volume of 1.06M.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PVH in relation to earlier this year. Most recently, in June 2016, Geraldine Penny McIntyre, a a Director at PVH bought 1,000 shares for a total of $97,470.
PVH Corp. designs, sources and markets brands in the dress shirts, sportswear, neckwear, jeanswear, intimate apparel, swim products, handbags, footwear and other related categaries. Its brand portfolio includes Calvin Klein and Tommy Hilfiger, as well as Van Heusen, IZOD, ARROW, Warner’s, Olga and Eagle, which are owned brands, and Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection, Chaps, Donald J. Trump Signature Collection, DKNY, Elie Tahari, Nautica, Ted Baker, J. Garcia, Claiborne, Robert Graham, U.S. POLO ASSN., Ike Behar, Axcess, Jones New York and John Varvatos. It aggregates its segments into three main businesses: Calvin Klein, Tommy Hilfiger and Heritage Brands. The Calvin Klein business consists of the Calvin Klein North America and Calvin Klein International segments. It controls the design and development of all products sold under the Calvin Klein brands, as well as oversees a worldwide marketing, advertising and promotions program for the brands. The Tommy Hilfiger business consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments. Its significant investments in global advertising and integrated marketing programs, with the popular The Hilfigers advertising campaign as the current cornerstone of global marketing strategy. The Heritage Brands business encompasses the design, sourcing and marketing of a varied selection of branded dress shirts, neckwear, sportswear, swim products, men’s underwear and women’s intimate apparel, as well as the licensing of brands for an assortment of products. It also includes private label dress furnishings programs, particularly neckwear programs. The company was founded by Moses Phillips and Endel in 1881 and is headquartered in New York, NY.