Jefferies Upgrades Kontoor Brands to Buy Amid Renewed Denim Demand
Jefferies has upgraded its rating on Kontoor Brands (KTB) from neutral to buy, citing renewed interest in denim and the company's potential for growth. The firm raised its price target to $89 from $82, implying a roughly 30% upside based on recent stock performance. Analyst Blake Anderson highlighted that Kontoor is well-positioned with favorable risk-reward dynamics as it accelerates growth through brands like Wrangler and Helly Hansen. Kontoor's shares have declined about 15-16% over the past year amid concerns around demand for specialty retail products, but Jefferies argues this has led to an undervaluation. The company’s recent acquisition of Helly Hansen is expected to support growth in both workwear and outdoor segments. Analyst Corey Tarlowe noted that denim's revival—now growing at or above apparel industry rates—is a key tailwind for Kontoor.
Tickers: $KTB
Topics: Denim Market Helly Hansen Jefferies Kontoor Brands Wrangler