Needham & Company Reiterates a 'Strong Buy' on Guess (GES); F3Q Outlook & Lowered FY11 Guidance Reflects Conservatism
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Price: $16.81 --0%
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Strong Buy' on Guess (NYSE: GES) price target of $59.00.
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 ~8.1x our reduced FY12 EPS estimate of $3.94, GES is trading at a substantial discount to the sector average of ~12x 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 15% to 18% and believe that fair market value for GES is at least 15x our FY12 EPS estimate, or about $59."
"We are reducing our F3Q, F4Q and FY11 EPS estimates to $0.75, $1.23, and $3.38, respectively, down from $0.88, $1.35, and $3.53...We are adjusting our F2Q, F3Q, F4Q, & FY12 EPS estimates to $0.98, $0.89, $1.43, & $3.94, respectively, from $0.93, $1.00, $1.52, and $4.09."
For more ratings news on Guess click here and for the rating history of Guess click here.
Shares of Guess closed at $33.29 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 ~8.1x our reduced FY12 EPS estimate of $3.94, GES is trading at a substantial discount to the sector average of ~12x 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 15% to 18% and believe that fair market value for GES is at least 15x our FY12 EPS estimate, or about $59."
"We are reducing our F3Q, F4Q and FY11 EPS estimates to $0.75, $1.23, and $3.38, respectively, down from $0.88, $1.35, and $3.53...We are adjusting our F2Q, F3Q, F4Q, & FY12 EPS estimates to $0.98, $0.89, $1.43, & $3.94, respectively, from $0.93, $1.00, $1.52, and $4.09."
For more ratings news on Guess click here and for the rating history of Guess click here.
Shares of Guess closed at $33.29 yesterday.
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