K-shaped Economy: The U.S. economy is experiencing a K-shaped recovery, where luxury spending is increasing while mass-market consumption declines, reflecting a growing wealth gap.
Luxury Spending Growth: Bank of America reports a 4% year-over-year increase in U.S. luxury spending for October, with jewelry spending seeing a significant rise from 10% to 16%.
Consumer Sentiment Decline: The University of Michigan's Consumer Survey indicates a drop in consumer sentiment to its lowest level since June 2022, highlighting the struggles of average Americans amid rising inequality.
Investor Confidence in Luxury: The Kraneshares Global Luxury Index ETF has seen a rise, indicating investor confidence in premium brands, as the wealthiest Americans continue to dominate stock ownership and luxury consumption.
Wall Street analysts forecast RL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RL is 401.85 USD with a low forecast of 305.00 USD and a high forecast of 473.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast RL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RL is 401.85 USD with a low forecast of 305.00 USD and a high forecast of 473.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 363.800
Low
305.00
Averages
401.85
High
473.00
Current: 363.800
Low
305.00
Averages
401.85
High
473.00
Deutsche Bank
Krisztina Katai
resume
$422
2026-01-08
Reason
Deutsche Bank
Krisztina Katai
Price Target
$422
AI Analysis
2026-01-08
resume
Reason
Deutsche Bank analyst Krisztina Katai resumed coverage of Ralph Lauren with a Buy rating and $422 price target. The firm resumed coverage of global brands, off-price, and specialty beauty retail. Following a "surprisingly strong" year for retail, Deutsche is entering 2026 with optimism as it anticipates a "volatile but broadly risk-on" macro environment, the analyst tells investors in a research note. The firm sees solid top-line trends, particularly in the first half of the year, due to easier weather comparisons and a boost in tax refunds.
UBS
NULL -> Buy
maintain
$435 -> $473
2026-01-08
Reason
UBS
Price Target
$435 -> $473
2026-01-08
maintain
NULL -> Buy
Reason
UBS raised the firm's price target on Ralph Lauren to $473 from $435 and keeps a Buy rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.
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Barclays
Overweight
maintain
$358 -> $409
2026-01-06
Reason
Barclays
Price Target
$358 -> $409
2026-01-06
maintain
Overweight
Reason
Barclays raised the firm's price target on Ralph Lauren to $409 from $358 and keeps an Overweight rating on the shares. The firm is "constructive" on the specialty retail sector into 2026, citing inventory discipline and macro tailwinds from lower interest rates and gas prices. However, stock selection "is critical as demand uncertainty persists," the analyst tells investors in a research note. Barclays adjusted price targets as part of its 2026 outlook.
Telsey Advisory
Outperform
maintain
$365 -> $435
2025-12-17
Reason
Telsey Advisory
Price Target
$365 -> $435
2025-12-17
maintain
Outperform
Reason
Telsey Advisory raised the firm's price target on Ralph Lauren to $435 from $365 and keeps an Outperform rating on the shares. Telsey is providing its outlook and top picks for 2026, the analyst tells investors. The firm names Ralph Lauren as one of its top picks in Apparel and Footwear, believing the company has built an agile business model with a product core than can perform across economic cycles. Additionally, the company's supply chain is well-diversified, the firm adds.
About RL
Ralph Lauren Corporation is engaged in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear and accessories, home, fragrances and hospitality. Its segments include North America, Europe, and Asia. Its brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. Its products include apparel and footwear and accessories for men, women, and children, as well as fragrance and home collections, together with its hospitality portfolio. Its range of footwear and accessories include casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, scarves, hats and others. Its range of home products includes bed and bath lines, lighting, dining, floor coverings, giftware and more. Its hospitality collection is comprised of its restaurants, including The Polo Bar in New York City, RL Restaurant located in Chicago, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
