Changes in Ralph Lauren ‘s business make the clothing brand investment coming out of the pandemic, in accordance with UBS. Analyst Jay Sole reiterated his buy rating and increased his price goal to $130 from $128, which suggests an upside of 36.2% over Thursday’s close. “We view RL as a robust turnaround stock,” Sole said in a note to clients. “We predict the market doesn’t appreciate the transformational changes the corporate has made to its brand, distribution model, and price structure.” The stock has performed nearly in keeping with the S & P 500 , shedding 19.7% this 12 months. Like other retail brands, the corporate has needed to grapple with inflationary impacts to consumers and their shifts to services from goods coming out of the pandemic. But brands that concentrate on higher-income consumers have been capable of avoid a few of those pitfalls, as experts note inflation has been felt more deeply by those in lower income brackets. Sole said Ralph Lauren could soon reach pre-pandemic levels by rolling back promotions, improving its supply chain and lowering expenses. He also said the corporate has bettered its distribution and “quality of sale” by reducing weak accounts and areas that dilute the brand, which permit for the corporate to get more revenue from direct channels. “This positions RL well to grow in a postpandemic world, in our view,” he said. Sole said the stock doesn’t fit neatly throughout the descriptions of de-risked, defensive or growth stocks within the near-term, but it should be viewed as de-risked when the corporate offers fiscal 2024 guidance. He said that announcement will come on the back of “surprisingly strong” sales growth, rebounding margins and the corporate mitigates raw material and provide chain headwinds and a lower share count than expected. The firm modestly increased fiscal 2023 and 2025 earnings outlooks by 3% and 1%, respectively, given the increasingly vibrant future he sees. These increases come from expected improvements in constant currency revenue outlook, an expectation of lower costs in some areas and an improved expectations for future stock buybacks. Difficulties related to foreign exchange and the broader economy are weighing down the forecasts, he said. He also raised fiscal third- and fourth-quarter 2023 per-share earnings estimates by 1.3% and 13.1%, respectively, as outlook continues improving aside from easing foreign exchange headwinds. — CNBC’s Michael Bloom contributed to this report.