Needham & Company Reiterates a 'Strong Buy' on Guess (GES); Impressive Summer/Fall Assortment at MAGIC Tradeshow
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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 $54.00.
Analyst, Christne Chen, said, "Strong global brand equity, fashion right product, & a broad product assortment (including large accessories penetration) provides GES pricing power to offset higher sourcing costs in F1H12, paving the way for margin expansion in F2H12 as costs decrease. At ~9.7x our FY12 EPS estimate of $3.60, GES is trading at a substantial discount to the sector average of ~16x & a discount to its long term organic growth rate of 14% to 18% and 5 year historical P/E of ~24x, which we think more than prices in European macro uncertainty. Long term growth should be fueled by Int’l (esp. Asia), Licensing, & +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% & believe that fair market value for GES is at least 15x our FY12 EPS estimate."
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 $34.89 yesterday.
Analyst, Christne Chen, said, "Strong global brand equity, fashion right product, & a broad product assortment (including large accessories penetration) provides GES pricing power to offset higher sourcing costs in F1H12, paving the way for margin expansion in F2H12 as costs decrease. At ~9.7x our FY12 EPS estimate of $3.60, GES is trading at a substantial discount to the sector average of ~16x & a discount to its long term organic growth rate of 14% to 18% and 5 year historical P/E of ~24x, which we think more than prices in European macro uncertainty. Long term growth should be fueled by Int’l (esp. Asia), Licensing, & +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% & believe that fair market value for GES is at least 15x our FY12 EPS estimate."
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 $34.89 yesterday.
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