Ralph Lauren is prepared to weather near-term tariff-related headwinds, Goldman Sachs said. The bank upgraded shares of the luxury fashion stock to buy from neutral. Analyst Brooke Roach accompanied the move by raising her 12-month price target to $286 from $280. Roach's updated forecast represents a 30% upside from Monday's close. The call comes as tensions between the U.S. and other key trade partners increase. The U.S. has placed tariffs on goods from Mexico, Canada and China. The latter countries slapped retaliatory levies on American products in response. RL 1M mountain RL 1-mo chart However, Roach said Ralph Lauren "has more limited exposure to key near-term macro risks vs. peers, including tariffs, department store slowdown, and the health of the lower-income consumer." She added that a recent sell-off in Ralph Lauren has opened up an attractive entry point. Shares are down more than 18% this month. Before the pullback, elevated valuations kept the analyst on the sidelines. "More recently, we have seen a pullback in valuations across the apparel sector due to macro uncertainty and market volatility, which we believe presents a buying opportunity for companies demonstrating limited signs of slowdown even amidst an increasingly volatile macro backdrop, such as RL," she added. "Here, we also believe brands with momentum are more likely to outperform in a variety of macro backdrops, which we believe is important given investors' increasing concerns regarding the health of the consumer." Most analysts are bullish on Ralph Lauren, with 12 of 19 rating it a buy or a strong buy. The average price target also signals upside of 33%.
