Wells downgrades PVH on inventory, currency headwinds

Wells Fargo downgraded PVH Corp. (PVH) to Equal Weight from Overweight with a price target of $105, down from $130. The firm says concerns over “weak” brand heat, heavy inventory and currency headwinds take its numbers down below Street estimates. On top of that, China “adds tail risk to the stock,” the analyst tells investors in a research note. Wells points out that in recent filings, PVH has cautioned of political risk growing to its China business. PVH was accused of boycotting cotton sourced from Xinjiang due to the connections with Uyghur forced labor, the firm points out.