JPMorgan sees shares of the Wrangler jeans maker gaining nearly 30%

Price Target

$90

JPMorgan's price target for Kontoor Brands, indicating a potential gain of over 28%.

Revenue Growth for Wrangler

low-to-mid single-digit growth

Projected improvement in revenue growth for the Wrangler brand.

Revenue Growth for Helly Hansen

low-double-digit growth

Projected revenue growth for Helly Hansen brand, indicating strong performance potential.

§ 01 Executive Snapshot

What: JPMorgan initiates coverage of Kontoor Brands with an overweight rating and a price target of $90.
Who: JPMorgan, Kontoor Brands, Analyst Matthew Boss.
Why it matters: The rating signals potential growth for Kontoor Brands, particularly through its focus on Wrangler and Helly Hansen, amidst a strategic shift following the sale of its Lee brand.

JPMorgan placed a price target of $90 on Kontoor shares, indicating a potential gain of over 28% from the previous close.
Kontoor Brands is expected to see revenue growth for Wrangler improve to low-to-mid single-digit growth, while Helly Hansen is projected to achieve low-double-digit growth.
The company sold its other denim brand, Lee, to Authentic Brands Group for $1 billion, narrowing its brand portfolio significantly.

Kontoor’s strategic shift following the sale of Lee indicates a focus on core brands, potentially streamlining operations and enhancing growth opportunities.
The apparel market is evolving, with increased competition requiring companies to hone their brand focus to maintain and accelerate growth.

Kontoor's narrowed brand focus may lead to improved revenue and earnings forecasts, positioning the company for potential market recovery.
The potential upside in stock value, as projected by JPMorgan, suggests that investor confidence could lead to increased market interest in Kontoor Brands.

Kontoor shares have declined more than 20% since a peak in January 2025, indicating market volatility and investor caution.
The apparel industry faces challenges such as changing consumer preferences and competitive pressures, which could impact growth projections.

Monitor Kontoor's earnings reports and revenue growth metrics for Wrangler and Helly Hansen to assess performance against projections.
Watch for market reactions to JPMorgan’s price target and any strategic announcements from Kontoor regarding brand management and growth initiatives.

§ 07

What is JPMorgan's price target for Kontoor Brands?

JPMorgan has set a price target of $90 for Kontoor Brands.

Why did Kontoor Brands sell its Lee brand?

Kontoor Brands sold its Lee brand to Authentic Brands Group for $1 billion to narrow its brand portfolio and focus on core brands.

How is Kontoor Brands expected to perform in terms of revenue growth?

Kontoor Brands is expected to see low-to-mid single-digit revenue growth for Wrangler and low-double-digit growth for Helly Hansen.

What risks does Kontoor Brands face in the apparel market?

Kontoor Brands faces risks such as changing consumer preferences and competitive pressures that could impact growth projections.