Goldman Sachs has revised its price target for PVH Corp. (PVH, Financial), reducing it from $99 to $92 while maintaining a Buy rating on the company's shares. This adjustment comes as the firm adopts a more cautious view of the U.S. apparel and softlines sector, influenced by broader economic factors.
The decision aligns with a revised economic outlook from Goldman's economists, who now project the U.S. GDP growth at a modest 0.5% for 2025, significantly down from an earlier prediction of 2.5% for 2024, based on a fourth-quarter-to-fourth-quarter comparison. The analysts also assign a 45% likelihood of a recession occurring, though they do not fully integrate this scenario into their current forecasts.
Growing market volatility, increased geopolitical instability, and elevated tariff rates contribute to potential risks that could impact earnings in PVH Corp. and the sector at large. Despite these challenges, Goldman Sachs maintains a positive stance on PVH, suggesting that the company's fundamentals remain strong even in a challenging economic environment.
