UPDATE: UBS Downgrades Express Inc. (EXPR) to Sell
Get Alerts EXPR Hot Sheet
Rating Summary:
7 Buy, 9 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
UBS downgraded Express Inc. (NYSE: EXPR) from Neutral to Sell with a price target of $10.00 (from $16.00). The change follows the release of Q2 results. Analyst Michael Binetti warned of downside risk in the second half of the year.
"We are downgrading EXPR to Sell (from Neutral) and lowering our PT to $10 (from $16) based on our view that EPS risk remains skewed to the downside despite the lowered guidance bar. While our base case assumes 2016 EPS of $1.08 (Guide: $1.00- $1.14), we see downside risk based on: 1) traffic deteriorating while the industry accelerated (EXPR decelerated when rest of the sector improved in June, peers Urban & AEO are seeing positive trends in Aug); 2) our sense that EXPR's Aug trends are running at the low-end of 3Q SSS guidance of –HSD/-LDD, and we believe Sept compares are tougher than Aug; 3) Product issues that could take more than 1-2 qtrs to fix (EXPR should be doing well considering several peers are seeing strong denim trends); 4) potential for margin pressure to increase as EXPR steps up direct mail marketing in 2H," said Binetti.
For an analyst ratings summary and ratings history on Express Inc. click here. For more ratings news on Express Inc. click here.
Shares of Express Inc. closed at $11.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
- Prysmian SpA (PRY:IM) (PRYMY) PT Raised to EUR53 at HSBC
- Intuitive Surgical (ISRG) PT Raised to $435 at Piper Sandler
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT Change, DowngradesRelated Entities
UBSSign 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!