01:05 PM EDT, 06/05/2024 (MT Newswires) -- PVH (PVH) remains attractive based on valuation after the company delivered no major surprises in its Q1 results, Wedbush said in a note Wednesday.

"We remain bullish on the name as we believe that it continues to possess a compelling multiyear margin story, and valuation is attractive to us," Wedbush analysts Tom Nikic and Matt Quigley said.

Despite sales pressure, PVH posted strong gross margin improvement and managed to expand EBIT margins slightly in Q1, Wedbush said, adding that "we do see a path to PVH potentially getting some EBIT margin expansion this year, with more expansion in FY25 and beyond as sales trends hopefully normalize and they realize cost efficiencies."

The report also pointed to solid top-and-bottom line growth in North America while Europe remained under pressure as expected amid encouraging order book improvement.

Wedbush kept its outperform rating on PVH while raising its price target to $143 from $128.

Price: 122.75, Change: +3.54, Percent Change: +2.97