UPDATE: Sterne Agee Initiates PVH Corporation at Buy

Sterne Agee has published a research report on PVH Corporation PVH initiated coverage on the company with a Buy rating. In the report, Sterne Agee writes, "We view PVH as an attractively priced global growth story with numerous intermediate-term opportunities to meaningfully improve profitability. We believe the company's substantial licensing streams provide risk-advantaged, steady and attractive cash flows. Licensing allows the company global exposure while minimizing the operational and strategic risks associated with the complexity of international ops. Near term, we expect upside to 4Q related to domestic AUR performance in dress furnishings, resilient SSS (QTD +15% vs. gdnc ~MSD), sequentially improving gross margins related to sportswear compares and top-line benefits from deployment of incremental marketing dollars." Sterne Agee has also established an $85 price target on PVH, which is currently trading down $0.19 from Friday's $73.66 closing price.