12:23 PM EDT, 10/02/2024 (MT Newswires) -- PVH (PVH) is facing near-term challenges to increase sales given the decline in European order books for spring and the recent cut to US and Asia sales expectations in August, BofA Securities said in a note Wednesday.

Although management aims for margin improvement, there are limited short-term growth drivers, the firm said.

"We think a potential H2 weighted revenue outlook, coupled with uncertainty on the timing and flow through of selling, general and administrative cost savings, tempers the risk/reward," BofA said in the note.

Additional risks include an investigation by China's Ministry of Commerce related to Xinjiang products and exposure to potential disruptions from the coastwide port strike in the US, according to the note.

BofA downgraded its rating on PVH to neutral from buy and reduced the price objective to $107 from $130.

Shares of PVC were down 2.2% in recent trading.

Price: 95.51, Change: -2.14, Percent Change: -2.19