UPDATE: Bank of America Resumes Coverage on PVH Corp. with Neutral Rating, $115 PT on Near-Term Headwinds

In a report published Thursday, Bank of America analyst Robert F. Ohmes resumed coverage on PVH Corp.

with a Neutral rating and $115.00 price target. In the report, Ohmes noted, “Given near-term revenue & expense headwinds following the Warnaco acquisition (completed 2/13/13) we see limited 2013 EPS upside. Our $115 PO is based on 14x our F15 (Jan.) operating EPS estimate of $8.20 and is supported by our DCF analysis (assumes a 7-8% expected return and 7.5x terminal EBITDA multiple). Cost synergies are still expected to reach $100MM over 4 years now (instead of 3) as PVH makes incremental investments in WRC's infrastructure, Calvin Klein Jeanswear product & design quality, in-store marketing, and talent (new heads of Europe & Asia being recruited). Expected WRC EPS dilution of ($0.25) in F14 (reduced from previous +$0.35 accretion) also reflects mark-downs associated with global CK inventory rationalization (particularly the CK Jeanswear business).” PVH Corp. closed on Wednesday at $109.46.