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Investing.com — Ralph Lauren Corp (NYSE:RL) shares declined 3.3% on Tuesday after Wells Fargo (NYSE:WFC) lowered its rating along with two other retail companies (VF Corporation (NYSE:VFC), and TJX Companies (NYSE:TJX)) as it becomes more cautious on macro concerns in the near term.
Wells Fargo analyst Ike Boruchow cut the rating for Ralph Lauren to equal weight from overweight, lowering the price target to $110 from $135.
Boruchow said the company operates in the highly competitive and fragmented apparel sector that has probably been “over-earning” for 12-18 months.
In addition, the analyst pointed to increasing consumer challenges that could dampen future spending. If there is a slowdown in the apparel sector, he believes mid-tier players such as Ralph Lauren are most at risk.
