PVH Corp (NYSE: PVH) may finally see improving sentiment for its Calvin Klein brand, according to Morgan Stanley.
Kimberly Greenberger initiated coverage of PVH with an Overweight rating and $164 price target.
The analyst said she expects a second half of 2019 and 2020 re-acceleration as recent negatives pivot to positives.
“We see the concerns that have pressured the stock over the last eight months turning into positives in [the second half]."
Fashion and merchandising execution issues at Calvin Klein fueled a 45-percent decline in the stock beginning in July 2018, Greenberger said.
Morgan Stanley views these issues as transitory as Calvin Klein management recalibrates its balance between fashion and core/basics — and supportive China policy measures stabilize consumer spending in the second quarter.
“As these issues resolve and EPS growth re-acclimated, we expect PVH stock can retract to higher levels, and at the current valuation of 12.x P/E we see a compelling opportunity to own this global growth story."
PVH shares were down 0.24 percent at $127.01 at the time of publication Tuesday.
Cowen Suits Up With Nike, Looks To Outperform
PVH Corp Analysts: Tommy Hilfiger Is Hot, Calvin Klein Is Not
Latest Ratings for PVH
|Apr 2019||Morgan Stanley||Initiates Coverage On||Overweight|
View More Analyst Ratings for PVH
View the Latest Analyst Ratings
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.