Mizuho Securities Remains Sidelined on Guess? (GES) Following 3Q Report
- S&P, Nasdaq hit highs on gains in health, tech stocks
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Sibanye Gold (SBGL) to Acquire Stillwater Mining Company (SWC) in $2.2B Deal
- Exclusive: ECB rejects Monte Paschi's request for more time to raise cash - source
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Mizuho Securities maintained a Neutral rating on Guess (NYSE: GES), and cut the price target to $14.00 (from $17.00), following 3Q report and guidance. GES reported EPS of $0.11, below the Street’s $0.14 estimate. American’s retail and wholesale businesses remain under pressure, driven by unseasonably warm weather and weakness in traffic.
Analyst Betty Chen commented, "On the heels of disappointing 3Q results due to weakness in the Americas and lingering impact into 4Q, we further reduced our estimates in anticipation of clearance activities and lack of clarity on when the region will turn. Though management’s four-prong strategy ranging from store closures, rent relief, digital investments, to supply chain initiatives may bear fruit longer-term, we believe a turnaround will prove prolonged amidst declining footfall. While GES enjoys $325mm of net cash and historically maintained a prudent approach to capital allocation, the use of ~$170mm on capex and dividends coupled with minimal OCF in FY16 may give investors pause."
Shares of Guess closed at $15.32 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MKM Partners Raises Price Target on Finisar (FNSR) to $43 Following 2Q
- BMO Capital Cuts Price Target on Cooper Cos. (COO) Following 4Q Results
- Oppenheimer Raises Price Target on CarMax (KMX) to $72 Ahead of 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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!