UPDATE: Piper Jaffray Downgrades Ralph Lauren on Spending Pause Against Multi-Year Investment Cycle

In a report published Wednesday, Piper Jaffray analyst Erinn E. Murphy downgraded the rating on Ralph Lauren Corp. RL from Overweight to Neutral, and lowered the price target from $200.00 to $170.00. In the report, Piper Jaffray noted, “As we think about the RL stock (not the company) over the next 6-12 months, we are stepping to the sidelines, moving our rating from OW to Neutral ($170 PT). To be clear, we view RL as a core holding for the longer-term oriented investor (2 yrs+) as we believe global growth initiatives in China, accessories & the prospects for accelerated sq-ftage (Polo stores in Europe) will create margin expansion opportunities over time. That said, in the absence of a compelling apparel spending environment and with a multi-year investment cycle underway, we believe earnings upside could be more limited. We believe money flow will favor equities but expect investors will pay up for visibility in beat & raise stories as we navigate through the evolving global retail landscape.” Ralph Lauren Corp. closed on Tuesday at $161.10.