Deutsche Bank Downgrades Express Inc. (EXPR) to Hold
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) in Advanced Talks to Acquire B/E Aerospace (BEAV) - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Deutsche Bank earlier downgraded Express Inc. (NYSE: EXPR) from Buy to Hold with a price target of $12.00 (from $19.00). The change follows the release of disappointing Q2 results.
Analyst Paul Trussell commented on the downgrade, saying, "EXPR diverged from the pack in 2Q as the company was unable to take advantage of an improved mall apparel backdrop, in our view, reporting a deeply underwhelming comp (-8% vs. DB -3%) and GPM (108 bps worse than our forecast). With 3Q and revised FY guidance suggesting a prolonged slump as the company tackles its unfocused assortment and works to flow through IT investments in order to achieve GPM benefit, we are stepping to the sidelines, especially as we are skeptical of management’s implied 4Q margin pick-up (i.e. less negative). We reduce our rating to Hold (from Buy) and our PT to $12 (from $19) as we prefer to wait out this storm and monitor progress along traffic and margin enhancement initiatives as well as store rationalization efforts. Until we can spot firm signs of trend-driven sales lift with inventory discipline and lower expenses, we are modeling flattish EPS growth in FY17 on -LSD comp to assume stabilization but not share gains."
Shares of Express Inc. closed at $16.03 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- RBC Capital Raises Price Target on Benchmark Electronics (BHE) Following In-Line 3Q
- Maxim Integrated (MXIM) PT Bumped to $45 at Jefferies Following In-Line Results on Note 7 Impact
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!