Investing.com — J.P. Morgan downgraded PVH Corp (NYSE:) to “Neutral” on a slower-than-expected recovery in topline growth amid global macroeconomic challenges and foreign exchange pressures.
“While we see multi-year brand unlock underway with the new leadership team focused on driving increased desirability of its brands, we see an elongated path to reach margin target given a slower topline recovery with continued macroeconomic challenges globally,” analyst said.
The brokerage also slashed its price target for the apparel maker to $113 from $149, reflecting a more cautious outlook on the Calvin Klein and Tommy Hilfiger parent company.
J.P. Morgan noted the potential for long-term brand improvement under PVH’s new leadership, including efforts to enhance product design and marketing, but analysts highlighted an elongated path to achieving management’s mid-teens operating margin target.
The report also flagged risks tied to a competitive promotional environment, fluctuating foreign exchange rates, and potential economic headwinds. J.P. Morgan noted that a weaker macroeconomic backdrop or changes in global trade policies could pose additional risks to PVH’s estimates.
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