Piper Jaffray Maintains Underweight Rating on Guess? (GES) Following Investor Dinner

Piper Jaffray maintains an Underweight rating and $16.50 price target on Guess (NYSE: GES) following an investor dinner with management. Analyst Erinn Murphy is encouraged by the improving trends in Europe.

Murphy Commented, "We hosted an investor dinner with the Guess management team including COO Mike Relich, CFO Sandeep Reddy and Director of Finance Fabrice Benarouche on the eve of our 35th Annual Consumer Conference. We are encouraged by the improving trends in Europe where retail comps, which often are a leading indicator of wholesale, were positive in Q1 and where traffic declines have improved QTD in Q2. NA comps remain negative but similar to Europe, traffic trends are less negative in Q2. Within apparel, women's is outperforming men's. Within accessories, footwear is positive, handbags are improving and watches are showing the steepest declines. While GES shares could rebound in the near-term given the inexpensive nature of the stock coupled the soundbites around improving Europe (35% of sales), we still need to gain clarity on sustainable margin recovery."

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 $19.87 yesterday.

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