BMO Capital downgrades RL from ‘Outperform’ to ‘Underperform’
Ralph Lauren Corporation (NYSE:RL) After being downgraded from ‘Market Performing’ to ‘Underperforming’ by BMO Capital, the company raised its price target by $4 to $100, still a significant drop from its current level. Analysts in the press noted declining profit margins, and although improving foreign exchange has driven stocks into recent positive moves, “especially as earnings pressure in North America has increased, we believe stocks have gone too far.” There are concerns about,” he said.
At first glance, RL is down 1.3% to $122.59, having previously traded to $118.32. However, the stock is above the notable short- and long-term daily moving averages, including the 20-day trendline. Year-to-date, equity is up 15.6%.
It’s also worth noting that short interest rates still represent 9.9% of the stock’s available float, even though shorts have bought back bearish bets over the past month. At RL’s average trading pace, it would take him nearly a week to cover.
Anyone looking to bet on the next move in stocks can now place their bets at a great price. This is due to the Shafer’s Volatility Index (SVI) of his 44% RL, which sits in his 28th annual percentile which is relatively low. This means options traders are setting low volatility expectations at the moment.
