NEW YORK (TheStreet) -- Shares of Ralph Lauren (RL) are rising by 2.85% to $131.92 in mid-morning trading, after analysts at Goldman Sachs upgraded the company to "buy" from "neutral" and raised their price target to $154 from $138.
Analysts said that they expect margin beats to drive a multiple re-rating towards historical levels.
"US apparel has been tough, but we think RL is better positioned with an estimated 70% of its business in Men's, Kids, Home and Accessories away from the Women's category, which has been troubled," analysts said.
Going forward, e-commerce should be a powerful driver of market share gains and capture more of the downstream retailer margin, analysts highlighted.
Ralph Lauren is an American clothing brand headquartered in New York City.
TheStreet Ratings team rates RALPH LAUREN CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RALPH LAUREN CORP (RL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."