Jefferies Lowers Price Target on Guess (GES), Sees No Risk at Current Price, PT Offers 89% Upside
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Price: $16.81 --0%
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reiterating its Buy rating on shares of Guess (NYSE: GES), but is lowering its price target from $62 to $60 following its July quarterly results.
The company reported strong second quarter results with sales and earnings both topping expectations. Guess did lower its full-year 2011 guidance, but not as low as many analysts were anticipating.
With nearly half of the company's European sales coming out of Italy, the firm notes that management calling its business there "not that bad" as a good thing. Jefferies believes that this should lift market fears of earnings risk in Italy.
Although the company reported a negative 2 percent comp in North America for the quarter, total profit dollars and operating margins improved.
Management also continue to be very bullish on its sales in Asia with sales increasing by 22 percent int he region for the quarter.
An analyst at Jefferies comments, "We see very little downside from current levels and see significant upside for a company with global brand strength and a visible plan to continued global growth. This combined with a very strong balance sheet and cash flow generation makes for a very attractive risk/reward."
The firm lowered its Q3 and FY12 EPS estimates from $0.91 and $3.57 to $0.75 and $3.40 while reaffirming its FY13 estimate of $4.00.
Jefferies new price target of $60 allows for a 80 percent upside from the stock's closing price on August 24 and 89 percent from its current asking price in the pre-market hours today, August 25.
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.
The company reported strong second quarter results with sales and earnings both topping expectations. Guess did lower its full-year 2011 guidance, but not as low as many analysts were anticipating.
With nearly half of the company's European sales coming out of Italy, the firm notes that management calling its business there "not that bad" as a good thing. Jefferies believes that this should lift market fears of earnings risk in Italy.
Although the company reported a negative 2 percent comp in North America for the quarter, total profit dollars and operating margins improved.
Management also continue to be very bullish on its sales in Asia with sales increasing by 22 percent int he region for the quarter.
An analyst at Jefferies comments, "We see very little downside from current levels and see significant upside for a company with global brand strength and a visible plan to continued global growth. This combined with a very strong balance sheet and cash flow generation makes for a very attractive risk/reward."
The firm lowered its Q3 and FY12 EPS estimates from $0.91 and $3.57 to $0.75 and $3.40 while reaffirming its FY13 estimate of $4.00.
Jefferies new price target of $60 allows for a 80 percent upside from the stock's closing price on August 24 and 89 percent from its current asking price in the pre-market hours today, August 25.
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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