Pro Analysis

Buy Calvin Klein stock on Brexit plunge: Analyst

A Tommy Hilfiger store in New York
Ramin Talaie | Bloomberg | Getty Images
A Tommy Hilfiger store in New York

Investors should buy apparel-maker PVH on the Brexit-induced pullback as the company's fundamentals remain strong, according to Piper Jaffray.

PVH manufactures and licenses a portfolio of apparel brands such as Calvin Klein, Tommy Hilfiger and Van Heusen.

"While we recognize there is investor uncertainty around the UK and broader Europe, we believe PVH business trends have been tracking well in Europe (27 percent of sales)," Piper Jaffray's Erinn Murphy wrote in a note to clients Tuesday.

"At this juncture, we are biased to the upside (not downside) to numbers and see any incremental FX headwind post Brexit as minimal. UK is ~3% of sales," she wrote.

PVH shares traded down 17 percent in the two trading days after the Brexit vote results Thursday.