RL - Retail recovery: Ralph Lauren and PVH land bull ratings from Barclays

Barclays upgraded both Ralph Lauren Corporation ( NYSE: RL ) and PVH Corp. ( NYSE: PVH ) to an Overweight rating on Friday with a new analyst assuming coverage of the stocks.

Analyst Paul Kearney said the upgrade on RL is predicated on it standing as a best-in-class apparel brand with a proven track record of brand elevation, white-space opportunities in women’s, international, and digital, and stronger position when it comes to the wholesale channel. The bullish view on PVH ( PVH ) is based off of early signs of success in the North American market, significant upside potential to estimates and strategic decisions by the company to take full ownership and control of its licensed businesses.

Kearney also sees reduced investor concerns on a near-term European consumer pullback driven by falling prices of natural gas and cooling F/X pressures as headwinds that should provide upside potential for sales and earnings this year.

The Seeking Alpha Quant Rating on RL is flashing Buy, while the SA Quant Rating on PVH is at Hold.

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