Goldman Sachs upgrades Ralph Lauren stock to buy

Goldman Sachs has upgraded Ralph Lauren's stock, saying the company can handle recent tariff challenges. The bank changed its rating from neutral to buy and increased its price target to $286 from $280. This new target suggests the stock could rise by 30% from its recent closing price. Analyst Brooke Roach noted that Ralph Lauren faces less risk from tariffs compared to other companies. As the U.S. imposes tariffs on imports from Mexico, Canada, and China, some of these countries have retaliated. Despite this, Roach believes Ralph Lauren is well-positioned. The company's shares have dropped over 18% this month, creating what Roach calls an attractive buying chance. Before the decline, high valuations had kept Roach cautious. Recent market uncertainties have lowered valuations across the apparel sector. Roach added that brands like Ralph Lauren, which show strong momentum, are likely to do well even in tough economic times. Most analysts are positive on Ralph Lauren, with 12 out of 19 suggesting it as a buy. The overall average price target also indicates a potential 33% increase.