Story updated at 10:05 a.m. to reflect market activity.
Ralph Lauren gained 1.6% to $162.51 in morning trading.
The bank raised its valuation ranger for the company to between $186 and $197 from between $166 and $171. Analyst Evren Kopelman said the upgrade is due to several new initiatives that could help accelerate growth for the clothing company.
"We see an inflection point for RL with several new initiatives that could accelerate sales growth. EPS revisions could turn positive on sales momentum as we believe investment spending-related margin pressure for FY2015 is already well laid out by RL and is mostly in consensus estimates and the stock," Kopelman said.
"We also see a potential acceleration in share buybacks. Our valuation range is $186-197 (vs. $166-171 prior) based on 18-19x our FY2016E EPS of $10.35, in line with RL's historical valuation and peers, and a higher multiple than we applied previously due to the upcoming improvement in EPS profile."
Separately,TheStreet Ratings team rates RALPH LAUREN CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RALPH LAUREN CORP (RL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."