Needham & Company Reiterates a 'Strong Buy' on Guess (GES); Guess it Wasn’t That Bad?; Lowering PT & Esimates
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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 lowered from $59 to $54.
Needham analyst said, "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 ~7.8x our reduced FY12 EPS estimate of $3.60, GES is trading at a substantial discount to the sector average of ~13x 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."
"We are reducing our F4Q and FY11 EPS estimates to $1.08 and $3.09, respectively, down from $1.23 and $3.38. We are lowering our F1Q, F2Q, F3Q, F4Q, & FY12 EPS estimates to $0.54, $0.89, $0.86, $1.31 and $3.60, respectively, from $0.64, $0.98, $0.89, $1.43 and $3.94."
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 $28.12 yesterday.
Needham analyst said, "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 ~7.8x our reduced FY12 EPS estimate of $3.60, GES is trading at a substantial discount to the sector average of ~13x 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."
"We are reducing our F4Q and FY11 EPS estimates to $1.08 and $3.09, respectively, down from $1.23 and $3.38. We are lowering our F1Q, F2Q, F3Q, F4Q, & FY12 EPS estimates to $0.54, $0.89, $0.86, $1.31 and $3.60, respectively, from $0.64, $0.98, $0.89, $1.43 and $3.94."
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 $28.12 yesterday.
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