Market Overview

Why Morgan Stanley Believes Ralph Lauren's New CEO Will Be 'Positive' For The Stock

Share:
Why Morgan Stanley Believes Ralph Lauren's New CEO Will Be 'Positive' For The Stock
  • Shares of Ralph Lauren Corp (NYSE: RL) have declined over 44 percent year-to-date, from the high of $186.23 achieved on December 30, 2014.
  • Morgan Stanley’s Jay Sole has maintained an Equal-weight rating on the company.
  • Ralph Lauren has named Stefan Larsson as the new CEO, an announcement that Sole believes would prove positive for the stock.

“Mr. Larsson is highly regarded and his skill set likely meshes well with those of other top RL leaders. Secondly, it removes an overhang by adding clarity around succession planning,” the Morgan Stanley report said.

Analyst Joe Sole believes that Larsson brings with him wide international retail experience, which would become an important asset for the company, given that international retail growth is likely to be the key to long-term EPS growth.

Sole also believes that “Mr. Larsson's product, merchandising, and marketing skills will complement those of Chris Peterson.” Peterson has been named the president of the company’s new global brand structure and SAP implementation.

“We essentially see Mr. Larsson as CEO and Mr. Peterson as COO. Bob Madore remains CFO,” the report mentioned, while adding that President and COO Jackwyn Nemerov is set to retire, but that the company “has a strong wholesale business bench.”

However, Mr. Ralph Lauren is not leaving the company. He will continue as the Executive Chairman and Chief Creative Officer, continuing to actively drive the company’s strategy and vision.

Sole also mentioned that while there appears to be limited upside to the medium-term consensus EPS and P/E expectations, the company has long-term potential, with strategic investments expected to drive EPS growth acceleration in 2HCY16 or 1HCY17.

Latest Ratings for RL

DateFirmActionFromTo
Sep 2019UpgradesNeutralOverweight
Aug 2019ReiteratesUnderperform
Jul 2019DowngradesPositiveMixed

View More Analyst Ratings for RL
View the Latest Analyst Ratings

Posted-In: Jay Sole Morgan Stanley Ralph Lauren Stefan LarssonAnalyst Color Reiteration Management Analyst Ratings Best of Benzinga

 

Related Articles (RL)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Wunderlich Likens Rentrak/comScore Deal To 'Next iPhone In Media Measurement'

Tesla's Model X Is 'A Technology Masterpiece'