UBS Reiterates Neutral Rating on G-III Apparel (GIII)

UBS analyst Mauricio Serna reiterated a Neutral rating and $31.00 price target on G-III Apparel (NASDAQ: GIII).

The analyst comments "We continue to rate GIII Neutral given its high leverage to Department Stores and gradual phase out of PVH brands licenses could weigh on longer term growth; we forecast a -1% 5-yr. EPS CAGR and think this outlook justifies a low P/E. However, despite these headwinds, we also came away from our meetings with management incrementally positive on GIII's potential to deliver LT growth as we believe GIII's owned brands could also drive growth given its premium position, agile supply chain, and share gain opportunities within US wholesale. Importantly, we see the recent AWWG investment as a potential unlock to GIII's international business. If we gain conviction GIII's initiatives are aligning to drive stronger long-term growth, we may revisit our view."

For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.

Shares of G-III Apparel closed at $26.01 yesterday.

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