Piper Jaffray's One Name to Buy in Retail: PVH (PVH)

Retail multiples have moderated significantly in the last month and Piper Jaffray analyst Erinn E. Murph believes PVH (NYSE: PVH) has more than corrected to the downside; particularly for a name that sees double-digit (13-15%) organic growth. The stock is already very close to Piper's downside scenario of $84.

PVH has brand specific catalysts with CK, the potential to take back global TH & CK licenses, has lower department store exposure than RL & KORS and has an international business we believe is outperforming plan.

PVH is trading at 12x forward below its peer group of 16x (VFC, RL, GIII, GES).

Given the re-rating of the group these past few weeks, they are adjusting their target multiple from 18x to 16x. At 16x $7.20 estimate, they arrive at $115/share (down from $132). Even if $7.00 was achieved next year, at 12x they would arrive be $84.

For an analyst ratings summary and ratings history on PVH Corp click here. For more ratings news on PVH Corp click here.

Shares of PVH Corp closed at $85.16 yesterday.

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