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PVH Corp (NYSE:PVH) just took a hit after J.P. Morgan downgraded the stock to "Neutral," citing a sluggish topline recovery and ongoing macroeconomic turbulence. The brokerage didn't stop thereit also slashed the price target from $149 to $113, dialing down expectations for the Calvin Klein and Tommy Hilfiger parent company. Analysts acknowledged PVH's brand revival efforts under new leadership but warned that hitting its mid-teens operating margin target is looking like a longer grind than expected.
J.P. Morgan's note flagged several pressure points: a crowded promotional landscape, foreign exchange volatility, and broader economic headwinds that could make the turnaround even tougher. Global trade shifts and a weaker macro backdrop could further complicate things. Still, PVH's consensus target price sits at $126.3, suggesting some analysts are holding onto optimismthough that gap could shrink fast if the bearish tone spreads.
Investors aren't waiting around. PVH stock dipped over 6% in the afternoon. With only five of 14 covering brokerages maintaining a "hold" rating, the market seems to be bracing for a rougher ride ahead. PVH's next moveswhether doubling down on brand momentum or finding ways to cut through the noisewill determine if it can shake off this wave of skepticism.
This article first appeared on GuruFocus.