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Jefferies Raises Estimates and Price Target on Guess (GES), Maintains Buy Rating

November 24, 2010 8:27 AM EST Send to a Friend
Get Alerts GES Hot Sheet
Price: $22.95 -0.69%

Rating Summary:
    1 Buy, 13 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 21
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Jefferies Buy rating on Guess (NYSE: GES) remains as it has since the firm initiated coverage on the company in March of 2009. The firm is raising their price target on the company to $60 from $50. The firm also is raising their EPS estimates and lowers EBITDA estimates for FY10 to $3.10/$473 from $2.95/$512 and to $3.50/$536 from $3.30/$550 for FY11. The company announced that they are distributing a $2 dividend on December $23 and increased it quarterly dividend 25%.

Jefferies reported that, "Guess should be able to reach a 20%+ operating margin in the next few years as 1) higher margin European sales out pace domestic growth, 2) cost/speed benefits of moving towards a global line kick in, 3) infrastructure investments support global growth leverage starting later in 2010) and 4) profitability improves for the smaller businesses (G by Guess, Marciano)."

For more ratings news on Guess click here and for the rating history of Guess click here.

Shares of Guess closed at $45.34 yesterday.




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