Brean Murray Maintains a 'Buy' on Guess? (GES); Raises Price Target & 2010 Estimates

June 5, 2009 11:35 AM EDT

Brean Murray maintains a 'Buy' rating on Guess? (NYSE: GES), but raises price target from $25 to $33.

Brean analyst says, "We believe the company has remained extremely tight on inventories and is well prepared for any potential upside in either international or domestic markets. Further, we believe the GUESS? product remains fashion right and should continue to drive solid results, especially as FX charges and operating comparisons moderate; we note, despite the increase in our FY10 EPS projection from $1.64 to $1.90, that we have assumed 2HFY10 EPS conservatively declines approximately 20% from the prior year; we believe there remains upside to our top and bottom-line projections. As such, we feel extremely comfortable increasing our target price to $33, or 15x our FY11 projections; we believe as the company continues to focus on operations and offering outstanding fashion/value, it will allow the robustness of the company's business model to become even more apparent in the coming quarters, resulting in higher multiples for GES; we remain buyers of GES."

Guess?, Inc. (GUESS?) designs, markets, distributes and licenses lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities.

To see more analyst ratings on GES Click Here.

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