Goldman Sachs Changes View To 'Sell' From 'Buy' On This Fashion Company

Goldman Sachs analyst Brooke Roach double downgraded Ralph Lauren Corp RL to Sell from Buy with a price target of $110, down from $142, implying a 5.5% downside.
The analyst sees "some slowdown in brand health indicators," which she expects will be a headwind to Ralph Lauren's near- and medium-term growth.
A lack of top-line brand momentum poses a risk to the company's leverage and margin expansion, Roach said.
The analyst added that Ralph lacks an "idiosyncratic catalyst" as it approaches a tougher demand and cost environment.
Yesterday, Cowen analyst John Kernan raised the price target on Ralph Lauren to $162 from $154 (suggesting a 39% upside) and kept an Outperform rating.
The analyst said the stock is relatively cheap with conservative consensus estimates and accelerating data in North America into the holidays.
Price Action: RL shares are trading lower by 2.63% at $116.93 on the last check Tuesday.

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