Ralph Lauren Polos Are Back, Baby By Investing.com

By Christiana Sciaudone

Investing.com —  Polo preppy is back in.

Ralph Lauren (NYSE:RL) jumped 2.7% after Cowen upgraded the stock to outperform from market perform as we set aside our loungewear.

Shares are up more than 75% this year, but the Street may be underestimating the stock, analyst John Kernan wrote in a note, boosting the price target to $152 from $110, CNBC said.

Demand for preppy luxe appears to be strengthening amid the company’s cost-cutting measures, Kernan said.  

“Ralph Lauren is somewhat unique in its positioning in that a series of operational restructurings were put in place pre-pandemic and, in some cases, accelerated through the pandemic, with the goal of emerging a stronger company post pandemic and for the long-term where the industry is likely to remain very digitally focused,” the note said.

It helps that we’ve saved a ton of money on top of receiving stimulus and have barely stepped out since March 2020.

“Wardrobe building into FY22 is a positive for the current environment where discretionary spend may shift to more formal apparel relative to the comfort/athletic trends that dominated 2020,” the note said.