Miller Tabak Cuts Price Target on Guess (GES) Following Weak Market Trends and Q3 Results

Miller Tabak is reaffirming its Buy rating on shares of Guess (NYSE: GES), but is reducing its price target from $48 to $40.

Following the release of the company's Q3 results, which were below expectations on both earnings and sales, the firm reports the "near-term outlook is unclear."

Miller Tabak is forecasting it may take between nine months and a year before Guess sees double digit top and bottom line growth. Until the growth is resorted, the valuation on the shares will remain low.

An analyst at Miller Tabak comments, "The European political crisis has finally begun to have an impact on consumer spending trends in key countries of Italy and France, compounding the negative top line and margin effects of a decision to shrink European jewelry distribution and continue to make strategic infrastructure investments in Asia."

For Q4, the firm is estimating earnings of $1.06 per share. For FY11 and FY12, Miller Tabak estimates earnings of $3.07 and $3.25 per share.

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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