Does Ralph Lauren Have a 30% Upside?

In a research note issued this morning, Goldman Sachs gave a big upgrade to fashion company Ralph Lauren (NYSE: RL), skipping neutral as it boosted the apparel and accessory business from a sell rating up to a buy. As part of its upgrade, it also set a price target of $141, a 36.9% upside from the $102.99 share price Ralph Lauren started today's trading with, and 66% higher than Wall Street's consensus $86.89 price target.

This bold break with the rest of Wall Street's analysts rests on a handful of factors. Goldman Sachs cited an inflection in the clothing sector, plus "several management initiatives to elevate the brand" as positives. The firm goes on to identify "the direct-to-consumer and Digital channel shift" as the major element justifying its soaring upside expectations.

The Ralph Lauren Polo store in Rome. Image source: Ralph Lauren Corporation.

Source Fool.com