Bank of America Merrill Lynch Maintains Neutral on Ralph Lauren

Bank of America Merrill Lynch is out with its report today on Ralph Lauren RL, maintaining Neutral. In a note to clients, Bank of America Merrill Lynch writes, "We view RL's accelerating emphasis on building out a global luxury business (particularly in China) with a focus on non-sportswear luxury categories should support a premium valutaion that is more in-line with global luxury players rather than apparel vendors. However, full year F12 gross margin upside should be more limited given rising sourcing costs." Bank of America Merrill Lynch maintains a $125 PO on RL. Shares of RL closed Wednesday at $114.70, down 11.35% from Tuesday's close.