Despite Weak Forecast, Goldman Sachs Defends “Conviction Buy” Rating on Ralph Lauren (RL)

By
A A A
Share |

Apparel maker Ralph Lauren Corp. ( RL ) on Thursday received some continued bullish commentary from analysts at Goldman Sachs.

The firm reiterated its "Conviction Buy" List rating and $200 price target on RL, which suggests a 32% upside to the stock's Wednesday closing price of $151.35.

A Goldman analyst commented, "Consistent with initial guidance, we believe FY13 is shaping up to be a tale of two halves with 1H lapping tough top-line compares and 2H benefitting from margin opportunity from lower commodity costs that is being reinvested to build a long-term franchise in China. With 1Q beat, 2Q now recalibrated, and 2H set to accelerate, we recommend investors capitalize on the recent pullback and buy this global franchise."


Ralph Lauren shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Ralph Lauren ( RL ) have a 1.06% dividend yield, based on last night's closing stock price of $151.35. The stock has technical support in the $137-$140 price area. If the shares can firm up, we see overhead resistance around the $160-$161 price levels.

Ralph Lauren Corp. ( RL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: RL

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

75%

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com