UPDATE: Morgan Stanley Downgrades PVH Following Warnaco Acquisition
In a report published Thursday, Morgan Stanley analyst Jay Sole downgraded the rating on PVH (NYSE: PVH) from Overweight to Equal-Weight.
In the report, Morgan Stanley noted, “We think a new key debate is how the weak sales, low traffic environment will affect PVH. 47% of its business is done in discount channels where pricing pressure is greatest. Plus, PVH lacks a strong online presence and the omni-channel capabilities others are using to offset weak traffic. Thus, we expect PVH is relatively more affected by the emerging environment than peers are. We now forecast margins flat or falling in 69% of PVH's business. Even in better channels, such as Macy's, we think PVH will feel price pressures.”
PVH closed on Wednesday at $122.04.
Latest Ratings for PVH
|Dec 2014||Morgan Stanley||Maintains||Equal-weight|
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