2023-03-28 07:54:23 ET
Bank of America reiterated a Buy rating on PVH Corp.( NYSE: PVH ) after posing to stronger-than-anticipated guidance from the apparel manufacturer.
Analyst Christopher Nardone and team said the PVH guidance suggested higher gross margins and roughly $200M in share buybacks this year. The main takeaway was that the PVH outlook was encouraging and should provide investors with increased confidence that the core international business for PVH remains intact and opportunities in North America are still in the mix.
"We think continued momentum in international markets (particularly Europe) and improved visibility into further margin expansion opportunities will help drive higher estimate revisions and a rerating in the stock’s multiple."
BofA assigned a price objective of $100 to PVH.
Shares of PVH rose 11.99% in premarket trading on Tuesday to $82.49.
Read a breakdown of PVH's Q4 earnings report.
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PVH is called an apparel stock standout by Bank of America