Susquehanna Cuts Price Target on Tween Brands (TWB) to $12

Susquehanna lowers its price target on Tween Brands (NYSE: TWB) from $25 to $12. The firm maintains a Positive rating.

The firm said it was surprised with Tween's move to convert its Limited Too brand into the Justice Brand and calls the decision "a bold move". Susquehanna notes that the decision was likely "rooted in the fact that the customer perception of the Limited Too brand is clearly premium priced, coupled with management's belief that the current consumer desire to shop for perceived value is here to stay."

At the same time, the firm believes that the cost savings which could take place at the new Tween "could surprise investors as Tween gears up to delivering operating margins of 8-10% over the next three to five years." Susquehanna emphasizes that shares of Tween offer a low risk opportunity for longer term investors.

With shares of Tween trading around $8.25 today, the firm's lowered price target represents a potential gain of about 45% from current levels.

Tween Brands, Inc. and its subsidiaries operate as a specialty retailer for tween girls in the United States and internationally.

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