Goldman Sachs has revised its price target for Ralph Lauren (RL, Financial), lowering it from $286 to $262 while maintaining a Buy rating on the shares. This adjustment comes as the firm adopts a more cautious view of the U.S. apparel and softlines market, considering the broader economic landscape.
Goldman's economists have also adjusted their expectations for U.S. GDP growth. They now project a significant slowdown, anticipating growth of just 0.5% in 2025, a decline from the previously expected 2.5% growth rate in 2024, calculated on a quarter-to-quarter basis. Furthermore, the firm estimates a 45% likelihood of a recession occurring.
Although Goldman Sachs has not fully factored a recession into its forecasts, it warns that ongoing market volatility, increasing geopolitical tensions, and higher tariff rates could negatively impact earnings, presenting risks in the near term.
