Should I Buy KTB? KTB 2026 Analysis

Should You Buy Kontoor Brands Inc (KTB) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

67.030

1 Day change

2.18%

52 Week Range

91.850

Analysis Updated At

2026/02/05

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Not a good buy right now for an impatient buyer: the stock is technically overbought (RSI 81) and is trading near a resistance zone (~66.6), increasing near-term pullback risk.
Upside exists longer-term (multiple bullish analysts with $74–$105 targets), but near-term catalysts are weak and earnings/guidance risk is ahead (2026-03-02 pre-market).
Options positioning is very bullish (calls dominate), which can be supportive, but IV is elevated (IV percentile ~86), suggesting the market is pricing higher event/volatility risk.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend/Momentum: Bullish momentum with MACD histogram +0.975 and expanding, indicating buyers have control.
Overbought condition: RSI(6)=81.17 signals overbought; odds favor a pause or pullback rather than a clean immediate breakout.
Levels: Pre-market ~65.53 is above R1 64.36 and below R2 66.63; risk/reward is less attractive buying into resistance vs. buying closer to the pivot (60.69).
Moving averages: Converging MAs suggest a transition zone; with RSI stretched, this often precedes consolidation.
Short-horizon pattern model: Similar-pattern stats imply ~80% chance of -0.7% next day, modestly positive bias over 1 week/month.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Put-call ratios are very low (OI PCR 0.41; Volume PCR 0.02) -> strong bullish/“call-heavy” sentiment.
Activity: Total volume 436 vs 30-day average is ~316%, indicating a notable spike in attention.
Volatility: 30D IV 54.08 vs historical vol 38.1 and IV percentile 85.66 -> options are pricing elevated moves (often seen ahead of meaningful events or uncertainty).
Takeaway: Sentiment is bullish, but elevated IV suggests the market expects bigger swings; this reduces the attractiveness of chasing the stock at overbought levels.

Technical Summary

Sell

Buy

Positive Catalysts

- Technical momentum is currently positive (expanding MACD), which can support continuation if price clears ~66.6 convincingly.

Neutral/Negative Catalysts

- Near-term technical risk: Overbought RSI and trading just under R2 ~66.6 increases odds of a near-term pullback.
- Event risk: Next earnings (2026-03-02 pre-market); Jefferies expects soft guidance, and tariff/Helly Hansen risks were explicitly flagged.
- Mixed street narrative on Helly Hansen: BNP views it as possibly overpaid / not growing, with management disruption concerns (CEO departure referenced).
- No supportive news flow in the last week (no fresh positive catalysts currently driving new demand).

Financial Performance

Latest reported quarter: 2025/Q3.
Revenue growth: $853.2M, +27.31% YoY (strong top-line expansion).
Profitability pressure: Net income $36.9M, -47.63% YoY and EPS 0.66, -47.62% YoY (growth is not flowing to the bottom line).
Margins: Gross margin 45.78%, +1.76% YoY (some improvement, but not enough to prevent EPS decline).
Read-through: The business is growing, but earnings power is currently weaker—this makes the stock more vulnerable into guidance/earnings.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend is mixed with a wide target spread:
- 2026-02-04 Jefferies: Initiated Hold, PT $65 (near current price; cites tariffs/Helly Hansen risk; expects soft guidance).
- 2026-02-03 Baird: Outperform, PT $105 (bullish “Fresh Pick”).
- 2026-01-22 Wells Fargo: Overweight, PT cut $100->$95 (still very bullish; disputes bear case on Helly Hansen).
- 2026-01-06 Barclays: Overweight, PT cut $94->$74 (constructive sector view, but more cautious valuation).
- 2025-12-09 BNP Paribas: Underperform, PT cut $56->$50 (skeptical on Helly Hansen acquisition value/growth).
Wall Street pros vs cons summary:
- Pros: Strong revenue growth, potential valuation appeal, multiple bullish firms see meaningful upside.
- Cons: Profit decline, Helly Hansen uncertainty, and a credible near-term “soft guidance” concern—plus the stock is technically stretched today.

6 Analyst Rating

Wall Street analysts forecast KTB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KTB is 93.4 USD with a low forecast of 74 USD and a high forecast of 118 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.

4 Buy

2 Hold

0 Sell

Moderate Buy

Current: 65.600

Low

Averages

93.4

High

118

Current: 65.600

Low

Averages

93.4

High

118

Jefferies

Hold

initiated

$65

AI Analysis

2026-02-04

New

Reason

Jefferies

Price Target

$65

AI Analysis

2026-02-04

New

initiated

Hold

Reason

Jefferies initiated coverage of Kontoor Brands with a Hold rating and $65 price target. The firm likes the company's free cash flow and low valuation multiple, but says Helly Hansen risk and tariffs set warrant below consensus estimates. It expects Kontoor to issue soft guidance when reporting its Q4 results.

Baird

Jonathan Komp

Outperform

maintain

$105

2026-02-03

New

Reason

Baird

Jonathan Komp

Price Target

$105

2026-02-03

New

maintain

Outperform

Reason

Baird analyst Jonathan Komp designated Kontoor Brands as a bullish Fesh Pick. Baird reiterated its Outperform rating and $105 price target on Kontoor Brands shares.

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KTB Should I Buy

KTB Should I Buy

Should You Buy Kontoor Brands Inc (KTB) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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