NEW YORK (TheStreet) -- Shares of Ralph Lauren (RL) - Get Report closed up on heavy trading volume on Thursday after CLSA began coverage of the stock with a "buy" rating and $125 price target, the Fly reports.
The New York-based luxury retailer is in an "early-stage turnaround story" and can boost profits by increasing its margins, the firm said.
Ralph Lauren's margins can grow from lower inventories, faster product lead times, store closures and management layoffs, according to CLSA.
The firm added that Wall Street's expectations have been "too low" in the out years, the Fly noted.
About 1.22 million of Ralph Lauren's shares traded hands today vs. its 30-day average volume of roughly 623,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: RL