Cramer Weighs In On Ralph Lauren Stock Following Analyst Downgrade

Cramer Weighs In On Ralph Lauren Stock Following Analyst Downgrade

Ralph Lauren Corp RL is trading lower Tuesday after Goldman Sachs analyst Brooke Roach downgraded the stock from a Buy to a Sell rating and lowered the price target from $142 to $110.

Despite the downgrade, "Ralph Lauren should not be sold," Jim Cramer said Tuesday on CNBC's "Squawk On The Street."

See Also: Benzinga's Top Ratings Upgrades, Downgrades For December 14, 2021

The two most obliterated groups of stocks are retail sector and meme stocks, according to Cramer. He thinks investors should avoid selling retail names into the weakness. 

"Retail has just been crushed here and I don't think it makes a lot of sense to sell Ralph Lauren after what I thought was a pretty decent quarter," Cramer said.

During its most recent earnings report, Ralph Lauren announced quarterly earnings of $2.62 per share, which beat the estimate of $1.99 per share. The company reported quarterly revenue of $1.5 billion, which beat the estimate of $1.47 billion.

The quarter was fine, but the sector is taking a beating, Cramer said: "I think retail is down too much."

He noted that he also likes Dick's Sporting Goods Inc DKS and he thinks Williams-Sonoma, Inc. WSM should be "bought aggressively."

On Friday, Ralph Lauren declared a regular quarterly dividend of $0.6875 per share.

RL Price Action: Ralph Lauren has traded as high as $142.06 and as low as $97.72 over a 52-week period.

The stock was down 3.09% at $116.37 at time of publication Tuesday morning.

Photo: courtesy of Ralph Lauren.

Posted In: clothingCNBCfashionJim CramerRalph LaurenSquawk on the StreetLong IdeasNewsDowngradesPrice TargetAnalyst RatingsTrading Ideas