Jefferies Upgrades To PVH To 'Buy' On Expected Return To Sales Growth: Retail Turns Bullish

Jefferies upgraded its rating on PVH Corp (PVH), the fashion company that runs Tommy Hilfiger and Calvin Klein, to 'Buy', citing its improving business prospects.

PVH shares rose 8.4% to their highest level in about four months.

The investment firm upgraded its rating from 'Hold' and also bumped the price target to $105 from $70 earlier, according to The Fly. The new target signals a 20% upside to PVH's last closing price.

Jefferies noted that PVH’s new leadership efforts and the easing of prior one-time challenges are expected to restore sales growth to the low single digits — a key factor supporting the stock.

The firm also anticipates that cost reductions and share repurchases will help drive earnings growth into the high single digits this year.

PVH had announced a $500 million buyback plan last month.

Jefferies' upgrade follows strong results from PVH for the last quarter.

Revenues declined less than expected, at 4.8%, and profit exceeded expectations.

CEO Stefan Larsson said in April that PVH was making headway with consumers in its key markets, such as North America, Europe, and Asia Pacific.

On Stocktwits, retail sentiment turned 'bullish' from 'bearish' the previous day, and message volume rose to 'high.'

PVH stock is down 17.5% year to date.

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