Needham & Company Reiterates a 'Strong Buy' on Guess (GES); F2Q EPS Guidance Better than Expected. FY11 Outlook Intact
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Price: $16.81 --0%
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Needham & Company reiterates a 'Strong Buy' on Guess (NYSE: GES), PT $59.
Needham analyst says, "Strong global brand equity, fashion right product, and a broad product assortment (including large accessories penetration) likely provides GES pricing power to offset higher sourcing costs in F2H. At ~11x our increased FY12 EPS estimate of $4.09, GES is trading at a discount to the sector average of ~15x and a discount to its long term organic growth rate of 14% to 18% and 5 year historical P/E of ~24x. We expect long term growth should be fueled by International opportunities, Licensing, and +DD U.S. retail square footage growth. Thus, we think GES should trade at least in-line with the lower end of its organic growth rate of 14% to 18% and believe that fair market value for GES is at least 14.5x our FY12 EPS estimate."
"We are adjusting our F2Q, F3Q, and FY11 EPS estimates to $0.84, $0.88, and $3.53, respectively, from $0.81, $0.90, $1.35, and $3.52...We are adjusting F1Q, F2Q, F3Q, F4Q, and FY12 EPS estimates to $0.64, $0.93, $1.00, $1.52, and $4.09, respectively, from $0.55, $0.94, $1.04, $1.53, and $4.06."
For more ratings news on Guess click here and for the rating history of Guess click here.
Shares of Guess closed at $40.10 yesterday.
Needham analyst says, "Strong global brand equity, fashion right product, and a broad product assortment (including large accessories penetration) likely provides GES pricing power to offset higher sourcing costs in F2H. At ~11x our increased FY12 EPS estimate of $4.09, GES is trading at a discount to the sector average of ~15x and a discount to its long term organic growth rate of 14% to 18% and 5 year historical P/E of ~24x. We expect long term growth should be fueled by International opportunities, Licensing, and +DD U.S. retail square footage growth. Thus, we think GES should trade at least in-line with the lower end of its organic growth rate of 14% to 18% and believe that fair market value for GES is at least 14.5x our FY12 EPS estimate."
"We are adjusting our F2Q, F3Q, and FY11 EPS estimates to $0.84, $0.88, and $3.53, respectively, from $0.81, $0.90, $1.35, and $3.52...We are adjusting F1Q, F2Q, F3Q, F4Q, and FY12 EPS estimates to $0.64, $0.93, $1.00, $1.52, and $4.09, respectively, from $0.55, $0.94, $1.04, $1.53, and $4.06."
For more ratings news on Guess click here and for the rating history of Guess click here.
Shares of Guess closed at $40.10 yesterday.
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