Raymond James initiated Ralph Lauren (NYSE:RL) at Outperform with a $135 per share price target in a note to clients on Friday.
Analysts told investors that the company has made big strides in recent years, elevating its brand, right-sizing wholesale distribution, strengthening DTC, and improving its GM percentage.
"From a stronger base, we see levers moderate revenue growth on a higher AUR (average unit retail, one of its biggest drivers in recent years) and unit volume from Asia, key cities globally, and under-penetrated categories," the analysts wrote.
"We model revenue +2% in FY24 and +5% in FY25, in line with Street but below RL's target algo of +MSD-HSD% on tough macro in N.America."
They also noted that RL's increasing cost discipline with cost savings means they see the potential for the company's margins to do better.
With net expectations relatively low for RL, Raymond James sees an attractive entry point.