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Goldman Sachs Lowers Price Target On The Children's Place (PLCE), But Keeps Buy Rating

August 19, 2011 8:57 AM EDT
PLCE Hot Sheet
Rating Summary:
    8 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Goldman Sachs lowered estimates and its price target on The Children's Place (NASDAQ: PLCE) from $58 to $56 following Q2 results, but kept its Buy rating.

The firm reduced 2011-2013E EPS to $3.25/$4.05/ $4.62 from $3.33/ $4.24/ $4.84.

"The children's apparel landscape has been very challenging, and we believe that PLCE is executing to the best of its ability in the midst of the highly competitive promotional environment," the analyst commented. The company grew gross margins +70bps while rival Carter's, Inc. (NYSE; CRI) gross margins were -560 bp and Gymboree (Nasdaq: GYMB) is expecting 2Q gross margins to be down in the 500 bp range, the firm noted.

For more ratings news on The Children\'s Place click here and for the rating history of The Children\'s Place click here.

Shares of The Children\'s Place closed at $39.60 yesterday, with a 52 week range of $36.96-$57.63.


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