Stifel has revised its outlook on Kontoor Brands (KTB, Financial), lowering the price target from $83 to $72, while maintaining a Hold rating on the company's shares. This adjustment is part of a broader update by the firm, which includes reducing target prices by an average of 18% across its coverage of sports and lifestyle brands. The changes are driven by expectations of potential tariff implementations, which could significantly impact earnings projections for 2026.
The updated valuations consider the potential imposition of a 10% blanket tariff rate, which would particularly affect goods sourced from China, accounting for about 60% of the relevant imports. This strategic reassessment signals caution over the long-term financial outlook under these trade conditions.
