J.P. Morgan Securities lifted its rating on the apparel stock to "overweight"
Ralph Lauren Corp (NYSE:RL) just received an upgrade from J.P. Morgan Securities to "overweight" from "neutral." The analyst maintained its $142 price target -- which is a near 25% premium to last night's close -- citing a return to events requiring an "elevated casual" style. J.P. Morgan noted the company's Polo brand, in particular. It also pointed to RL's "sustainable top-line growth" in North America, adding that sales in China, Russia, and Eastern Europe account for less than 10% of the company's revenue.
At last check, RL was trading flat, down less than 0.1% at $114. The stock recently attempted a rally back toward its year-to-date breakeven level -- a region it's roughly 4% below at the moment. It's been a volatile year on the charts for the equity as it comes off an annual low of $100.44, with new pressure forming at the previously supportive 320-day moving average.
Coming into today, the brokerage bunch was split, with four calling RL a "strong buy," and four saying "hold." Meanwhile the 12-month consensus price target of $142.72 is a 25.2% premium to last night's close.
Short sellers have hit the exits, with short interest down 31.8% in the last two reporting periods, but a further unwinding could put additional wind at the equity's back. The 2.61 million shares sold short make up 5.7% of the stock's available float and would take two-and-a-half days to cover at its average daily pace of trading.