UPDATE: Bank of America Raises PO to $165 on Ralph Lauren on Gross Margin Outlook

Bank of America reiterated its Buy rating on Ralph Lauren RL and raised its price objective from $160 to $165. Bank of America said, "We are maintaining our F2013E EPS to $7.85, as F2Q EPS upside and an improving full year GM outlook is partially offset by expected declines in wholesale (reduced China distribution and American Living exit), weaker Asia and tourist retail trends, closing of Rugby, continued costs for strategic initiatives, and unfavorable FX effects. We are adjusting our PO to $165 (from $160) 18-19x our F14E EPS of $8.75. Ralph Lauren closed at $160.75 on Friday.