Kontoor Brands (KTB), mcap=$1.8bn, price $32.62 vs $40.80

– Global jeans brands
– Wrangler and Lee.
– Underinvested by the previous parent, which treated
KTB as a cash cow only.
– Spinned-off three years ago.
– New management brought clear performance improvements.
– Expected margin improvement over the next few years.
– Trades at 8.6x ’22 EPS and 4.5% dividend yield.
– Little risk of permanent capital loss.
– Potential take-out target.

Valuation: KTB Trades at a discount to LEVI. 8.6x ’22 EPS and 4.5% dividend yield.

Exp. gain: 20% IRR over the next 3-5 years. +40-90% upside in the takeout scenario.

Full KTB write-up (free guest account required):


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