Phillips-Van Heusen (PVH) Picks Difficult Time To Integrate Tommy Hilfiger

Citi Investment Research & Analysis analyst Kate McShane lowered her rating for shares of Phillips-Van Heusen Corporation

to a Hold, from the previous rating of Buy, while increasing the price target to $61 per share. Although she believed Phillips-Van Heusen Corporation has realistic plans to yield value from its Tommy Hilfiger acquisition, she thought that the companies were attempting to integrate during a highly volatile time in the European macro environment. Along with the downgrade, Phillips-Van Heusen Corporation was removed from Citi’s “Top Picks Live!” The Citi Investment Research & Analysis analyst wrote, "in our view, Tommy Hilfiger is attractively positioned as a premium yet affordable designer lifestyle brand. We also believe PVH has a solid track record of acquiring, integrating & positioning targets. However, we are concerned PVH is integrating the acquisition at an exceptionally volatile time in the European macro environment, which could result in pressure on revenues, synergies, and deal integration."