JPMorgan analyst Matthew Boss initiates coverage on Kontoor Brands (NYSE: KTB) with a Overweight rating and a price target of $90.00.

The analyst comments: “We are initiating coverage of Kontoor Brands (KTB) with an Overweight rating and $90 December 2027 price target. Importantly, we see the portfolio at an inflection point to accelerate growth into FY27, with a narrowed focus on function-based brands consisting of Wrangler (low-to-mid-single-digits+ revenue growth profile on core/replenishment denim + early innings Women’s/ DTC/Int’l growth) and Helly Hansen (“breakout” +double-digit growth opportunity into ’27), following the divestment of the Lee brand (announced 5/21). On the top-line, our model at +4% revenue growth through FY28 is prudently based on +3% Wrangler growth and high-single-digit Helly Hansen - each commensurate with their trailing twelve months profiles setting up beat & raise opportunity. On the bottom-line, ~20% adj. EBITDA margins by FY28 (= best in class vs. mid-teens% Apparel Global Brands average) and sector leading >100% FCF conversion by our model (underpinned by 23% operating margins at Wrangler fueling investments at the Helly Hansen brand) translates to a mid-teens(+) total shareholder return profile.”

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Shares of Kontoor Brands closed at $70.07 yesterday.