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Ralph Lauren's 'elevated casual' style and low exposure to China and Russia drive JPMorgan upgrade

Ralph Lauren Corp. (RL) is on trend according to JPMorgan analysts, who upgraded the lifestyle company to overweight from neutral. JPMorgan maintained its $142 price target. Analysts cited the "elevated casual" style of the Polo brand, which is largely for men, and the return to events that will boost the high-end merchandise. JPMorgan also examined the company's exposure to China, Russia and Eastern Europe, and determined those regions account for under 10% of revenue. North America, which shows signs of "sustainable top-line growth," accounts for about half of revenue. Heading out of the pandemic, JPMorgan says Ralph Lauren has accomplished the strategic goals it set in September 2020, including a reduction of off-price sales and a refocus on core brands. Ralph Lauren stock was up 3.3% in Thursday premarket trading, and is down 5.8% for the past year. The S&P 500 index is up 9.7% for the last 12 months.

-Tonya Garcia


(END) Dow Jones Newswires

03-17-22 0824ET

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