Home Investing UBS reveals its top apparel stock for 2023

UBS reveals its top apparel stock for 2023

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PVH Corp (NYSE: PVH) is trading up on Thursday after a UBS analyst dubbed the stock his “top pick” in the space for 2023 following a meeting with the management.

PVH stock has a 35% upside from here

Jay Sole reiterated his “buy” rating on the clothing company this morning and said its shares had upside to $100 that translates to about a 35% increase in the stock price from here.

In apparel, he’s convinced the Calvin Klein parent is most likely to beat earnings estimates next year.

The market is too focused on macro/fx and is missing PVH Corp’s ability to drive relative earnings outperformance versus peers using its PVH+ Plan self-help initiatives.

The retailer reported its financial results for the third quarter last week that handily topped Street expectations. For the year, PVH stock is down more than 30% at writing.

PVH stock is trading at a relative discount

According to Sole, the company previously known as Phillips-Van Heusen Corporation is a treat in terms of valuation as well.

PVH stock is currently trading at roughly eight times its FY24 per-share earnings – a multiple that suggests about a 40% discount versus its peers in softlines. The note adds:

One of investors’ core questions is if PVH Corp has the right plan to transform Tommy Hilfiger and Calvin Klein into premium, direct-to-consumer, global, lifestyle brands and transcend the wholesale channel. Our view is, yes.

China is beginning to come out of the COVID related restrictions and that’s likely to benefit PVH Corp as well.

The post UBS reveals its top apparel stock for 2023 appeared first on Invezz.

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