economy
The Wrangler jeans owner is having a great year. UBS sees nearly 70% rally ahead
Kontoor Brands, which owns Wrangler jeans, is likely to see its rally gain even more steam as it puts more focus on its higher-performing brands, per UBS.
TL;DR
- UBS has a buy rating on Kontoor Brands, raising its price target to $136 and anticipating 67% upside.
- The bank believes Kontoor owns two strong brands, Wrangler and Helly Hansen, with significant long-term growth opportunities.
- Kontoor Brands has experienced a 36% year-to-date stock increase, boosted by strong Q2 financial results and raised full-year earnings expectations.
- The company plans to sell its Lee denim brand to Authentic Brands Group for up to $1 billion to focus on Wrangler and Helly Hansen.
- UBS expects Kontoor to evolve into a growth stock post-Lee divestiture, driven by improved sales growth, margin expansion, and higher cash returns.
- Seven out of ten analysts covering Kontoor have a buy or strong buy rating.