NEW YORK (TheStreet) -- Ralph Lauren had its rating lowered to "neutral" from "buy" by analysts at Janney Capital Markets this morning. The firm cited intensifying global headwinds that could further dampen top line, ongoing investments muting margins, as well as valuations for the downgrade. However, Janney noted that the risk/reward is more balanced over the next 12 months, and increased its fair value to $187 per share from $174 per share. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Shares of Ralph Lauren closed lower by 0.12% to $178.57 yesterday. New York City-based Ralph Lauren is engaged in the design, marketing and distribution of products, including men's, women's and children's apparel, accessories, fragrances and home furnishings. Separately, TheStreet Ratings team rates RALPH LAUREN CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate RALPH LAUREN CORP (RL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: RL's revenue growth trails the industry average of 17.1%. Since the same quarter one year prior, revenues slightly increased by 4.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. RL's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, RL has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs. The gross profit margin for RALPH LAUREN CORP is rather high; currently it is at 56.77%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.08% is above that of the industry average. RALPH LAUREN CORP reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, RALPH LAUREN CORP increased its bottom line by earning $8.42 versus $8.00 in the prior year. This year, the market expects an improvement in earnings ($8.52 versus $8.42). You can view the full analysis from the report here: RL Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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