09:35 AM EDT, 05/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $10 to $160, based on 16.0x our FY 25 (Mar.) EPS estimate and slightly higher than the company's five-year average forward P/E multiple of 15.4x. We lift our FY 25 EPS estimate by $0.50 to $10.00 and initiate our FY 26 EPS estimate at $10.50. RL posted normalized Q4 EPS of $1.71 vs. $0.90, $0.04 above consensus estimates on revenues of $1.57B vs. $1.54B and slightly above estimates. By region in Q4, North America sales increased 1.8%, Europe increased 1.8%, and Asia increased 1.1%. Q4 adjusted gross margin expanded 480 bps Y/Y to 66.6% due to lower freight costs, favorable channel and geographic mix, and higher prices. RL guided for low-single-digit revenue growth and operating margin expansion of 110 bps at the midpoint. The company announced a 10% increase to its quarterly cash dividend, which now sits at $0.825. RL continues to execute well; however, we believe shares are fully valued after a 51% increase in shares in the past year.