JPMorgan has initiated coverage of Kontoor Brands (KTB) with an ‘overweight’ rating and a $90 price target, signaling a potential 30% increase in share value. The bank identifies an “inflection point” for the Wrangler jeans maker, driven by a strategic narrowing of focus on its core brands.
Analyst Matthew Boss believes Kontoor can accelerate growth by concentrating on Wrangler and Helly Hansen, with potential for enhanced revenue performance beyond current models.
JPMorgan is bullish on Kontoor Brands (KTB), the parent company of iconic denim brand Wrangler, initiating coverage with an 'overweight' rating and a $90 price target, suggesting a potential upside of nearly 30% from its previous closing price. The investment bank believes the apparel company is at a critical "inflection point" as it narrows its brand focus.
Analyst Matthew Boss highlighted that Kontoor's strategic concentration on its core brands, Wrangler and the outdoor apparel manufacturer Helly Hansen, presents a significant opportunity for accelerated growth. "We see revenue growth upside opportunity for Wrangler to improve to +low-to-mid-single-digit(+) growth... & Helly to low-double-digits(+) growth," Boss stated in a note, indicating potential for higher growth than previously modeled.
This sharpened focus follows Kontoor's strategic decision to divest its Lee denim brand to Authentic Brands Group for $1 billion. Shares of Kontoor have experienced a pullback, trading down more than 20% from their January 2025 peak. However, JPMorgan's price target implies a recovery close to those levels, with potential for further gains.
Boss also sees potential for upside beyond his initial earnings and multiple forecasts. He noted that the sale of Lee at 10x trailing twelve-month EBITDA provides a precedent for Kontoor, suggesting that an 8.5x multiple on Kontoor's own EBITDA could support an even higher equity value of $108 per share.
Image is representative of analyst call coverage.
The bank's research is part of a broader look at analyst stock calls for Monday, June 8th, 2026, which also included insights on major tech players like Nvidia and Apple, as well as other consumer brands.
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