JPMorgan says apparel company Control Brands’ portfolio is at an “inflection point.” The bank initiated coverage on the stock with an overweight rating on Monday. It also has a $90 price target on the stock, indicating an upside of more than 28% from Friday’s closing price. Analyst Matthew Voss said the company’s focus on its brands, jeans maker Wrangler and outdoor apparel maker Helly Hansen, is creating an opportunity to accelerate its growth. “By narrowing our operational focus to two brands, we see an opportunity for upside revenue growth, with Wrangler improving to low-to-moderate (+) single-digit growth (vs. our model vs. low singles) and Helly (vs. our model) low-double-digit (+) growth (vs. high singles),” Voss wrote in a note. KTB 1Y Mountain Control Brand 1 Year. The portfolio shrank after Kontoor agreed to sell its other denim brand, Lee, to Authentic Brands Group for $1 billion. Kontoor stock is down more than 20% from its January 2025 high. JPMorgan’s price target would take the stock roughly back to that level, but Boss sees upside to his forecast. “We see fundamental upside to our ‘E’,” Voss said, adding, “(particularly given our prudent sales growth forecast), our multiple is significantly higher than our most recent lead transaction (Ree’s Authentic Brands Group announced on May 21st). (Authentic Brands Group) at 8.5x compared to 10x ( trailing 12 month EBITDA), which supports an upside of $108 in share value.”
