UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on Ralph Lauren Corp. as Foreign Currency Overshadows Operational Initiatives

In a report published Thursday, Credit Suisse analyst Christian Buss reiterated an Outperform rating on

, but lowered the price target from $187.00 to $151.00. In the report, Credit Suisse noted, "Ralph Lauren's EPS miss ($2.42 versus our $2.53) centered primarily around impact from FX headwinds and increased promotional intensity in North America. Spending controls helped protect operating margin of 15.5% in the quarter, in line with our expectation. Unfortunately, preliminary FY16 guidance for a 550bp Y/Y impact from foreign currency, translating to a negative $185M impact to operating income, leaves us increasingly cautious. We expect a rebound in EBIT margin to be delayed until FY17, but maintain our high conviction in operational rationalization that is likely to benefit earnings power long-term. We maintain our Outperform rating and lower our Target Price to $151 from $187." Ralph Lauren Corp. closed on Wednesday at $139.71.