This apparel company's earnings are poised for growth over the next two years, Guggenheim says

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Cyclical tailwinds and an attractive valuation make this apparel company a good buy with potential for 45% upside, Guggenheim says.

Ralph Lauren 's solid fundamentals have translated to a promising long-term growth outlook, according to Guggenheim. The firm upgraded shares of the apparel company to a buy rating from neutral on Monday, and initiated a price target of $166. This forecast implies more than 45% upside from the stock's Friday close of $113.86. Shares of Ralph Lauren have climbed nearly 8% since the start of 2023.

The analyst expects Ralph Lauren's earnings to benefit from several cyclical tailwinds and boosted his estimates for the next two years. Drbul expects full-year 2024 adjusted earnings of $9.50 per share and $10.75 in 2025 — above Wall Street consensus and up from $9.15 and $10.35 per share, respectively.

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