Ralph Lauren Corp RL is poised for market share gains and margin expansion, given its improving execution and "building momentum within the company's brand elevation strategy," according to Goldman Sachs.

The Ralph Lauren Analyst: Analyst Brooke Roach upgraded the rating from Neutral to Buy, while raising the price target from $280 to $286.

The Ralph Lauren Thesis: There is high visibility into the company's earnings growth ahead, given its "broad-based geographic and category growth opportunity and idiosyncratic drivers of margin expansion," Roach said in the upgrade note.

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Ralph Lauren has lower exposure to near-term macro risks than its peers, such as "tariffs, department store slowdown, and the health of the lower-income consumer," she added.

Improving execution of key strategic initiatives could continue driving earnings growth, the analyst stated.

"More recently, we have seen a pullback in valuations across the apparel sector due to macro uncertainty and market volatility, which we believe presents a buying opportunity for companies demonstrating limited signs of slowdown even amidst an increasingly volatile macro backdrop, such as RL," Roach further wrote.

RL Price Action: Shares of Ralph Laurenhad risen by 0.14% to $220.33 at the time of publication on Tuesday.

Read More: Luxury Fashion House Ralph Lauren Boasts ‘Robust Growth Across All Regions,’ Analyst Initiates Coverage

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