Piper Jaffray Upgrades Guess (GES) to Neutral

Piper Jaffray upgraded Guess (NYSE: GES) from Underweight to Neutral with a price target of $20.00 (from $16.50), saying trends in Europe are now tracking positive.

Analyst Erinn Murphy commented, "We are upgrading shares of GES from Underweight to Neutral following meetings and store checks in Europe (34% of sales) that suggest to us that recent trends are improving against broader European recovery. While we still believe trends in North America retail (43% of sales) have been volatile and new product strategies still need to be proven in 2H, we believe downside to GES shares is limited given the optics around Europe and the region's underlying margin implications. As such, we are raising our Q2 EPS estimate from $0.14 to $0.16--the high-end of guidance. Our price target moves up from $16.50 to $20. We see a positive trading dynamic on GES shares in the near-term given that European comps have likely accelerated from Q1. Long-term, we still need to gain clarity on sustainable margin recovery in North America to be more constructive on shares."

For an analyst ratings summary and ratings history on Guess click here. For more ratings news on Guess click here.

Shares of Guess closed at $19.05 yesterday.

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