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LivestreamMenuKontoor Brands is poised to climb even higher as it puts more weight behind its Wrangler and Helly Hansen brands, according to UBS. The investment bank has a buy rating on Kontoor. It raised its price target on shares to $136 from $131, suggesting 67% upside from Wednesday’s close. “We believe KTB owns two strong brands with significant [long-term] opportunities across categories, channels, and geographies,” analyst Mauricio Serna said Thursday in a note to clients. “We see…upside, driven by strong underlying growth potential.” Shares of Kontoor have jumped 36% year to date, partially fueled by the company reporting strong financial results for the second quarter and raising its expectations for its full-year earnings. The apparel company has also shown signs of prioritizing its growth brands while divesting from less high-performing assets, inspiring more confidence in its stock. KTB YTD mountain Shares are up 34% in 2026. In May, Kontoor said in a statement that it would sell its Lee denim brand to Authentic Brands Group in a deal valued at up to $1 billion. The divestiture will enable Kontoor to shift its focus to Wrangler and Helly Hansen — a move that could ultimately drive more value to its shares, according to UBS. “We remain confident KTB can evolve into a growth stock after the pending Lee divestiture, driven by: 1) sales growth improving to [mid-single digit percentage points] from [low-single digit percentage points]; 2) margin expansion from mix benefits, cost savings, and expense leverage; and 3) higher cash returns via planned share repurchases and debt reduction,” Serna wrote. UBS’ call falls in line with consensus on the street. Of the 10 analysts covering Kontoor, seven have a buy or strong buy rating on the stock, LSEG data shows. Kontoor Brands rose more than 1% following the upgrade.Read More
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