Ralph Lauren Corp "Very Solid 4Q26 Report; Raise PT, and Reiterate Buy Rating"

研报英文原文证据摘录

Ralph Lauren Corp "Very Solid 4Q26 Report; Raise PT, and Reiterate Buy Rating"

rowth came in over 500 bps above our forecast. We anticipate very Q2E 3.67 4.11 12 3.93

solid topline momentum to continue and now have a more constructive topline growth Q3E 6.66 6.99 5 7.07

outlook across RL's regions. We now anticipate higher gross margins given stronger Q4E 2.88 3.35 16 2.91

expected AUR gains driven by greater full-price selling and lower promotions, as well as 03/27E 17.15 18.65 9 18.05

lower expected headwinds related to tariffs and freight. Additionally, we now anticipate 03/28E 18.50 20.00 8 19.98

higher EBIT margins given improved leverage in RL's key cities and supply chain and 03/29E 19.70 21.30 8 19.71

technology investments on a higher revenue base. We also forecast a lower share count

Jay Sole

related to higher expected FCF generation. Together this drives the HSD% increase in

Analyst

our FY27-FY29 EPSe, respectively. Please see much more modeling detail inside. jay.sole@ubs.com

+1-212-713 3559

Valuation: We raise our price target 6% to $511 and reiterate our Buy rating:

Mauricio Serna, CFA

Our $511 PT is based on ~24x our $21.30 FY29 EPS estimate. We are rolling our Analyst

valuation forward to FY29E since RL is starting a new fiscal year. This causes us to use a mauricio.serna@ubs.com

higher EPS base for our PT while this also causes us to use a slightly lower P/E from 26x +1-212-713 9028

since more of the growth story has now played out, in our view. Our multiples analysis Natalie Koltermann

indicates a $511 PT and puts RL's valuation in line with peers in terms of P/E, P/Sales and Associate Analyst

FCF yield (Figure 4). Our DCF analysis also supports a $511 valuation. natalie.koltermann@ubs.com

+1-212-713 4229