BofA Downgrades PVH Corp To Underperform

Analysts at Bank of America downgraded shares of PVH Corp PVH to Underperform from Neutral with a $125 price target.

Analysts point out three concerns moving forward:

• Unfavorable risk/reward. Robert Ohmes stated,”PVH is now trading at over 15x our below consensus F16 EPS estimate of $8.50 and above our $125 PO implying an unfavorable risk/reward, in our view.”
• Fiscal second half 2015 growth dependent on Calvin Klein & Heritage brands improvement. A disappointing customer response to these product lines this fall could further deteriorate future sales guidance.
• Risks outweigh rewards during apparel uncertainty. Ohmes stated,”PVH has a history of relatively Underperforming / Market-performing the S&P 500 during disinflationary/deflationary apparel environments and when apparel disinflation is bordering on deflation.”

Shares of PVH Corp are trading at $127.85 down 0.4 percent