Brean Murray Carret & Co. Reiterates a 'Buy' on Guess (GES); Creating Baseline Case; Aggresively Buy on Dip
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Price: $25.68 -1%
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Brean Murray Carret & Co. reiterates a 'Buy' on Guess (NYSE: GES) price target lowered from $50 to $42.
Analyst, Eric Beder, said, "We are reiterating our Buy rating on GES, but lowering our PT and taking a materially more conservative tack to our previously Street high FY13 and FY14 projections after GES registered in-line Q4 results, but provided what we view as highly conservative guidance, as (1 mgmt remains nervous over European economic recovery; 2) believes that FX and increased marketing spend for their 30th anniversary will lead to a $0.35-0.40 hit to EPS and 3) is now assuming a slighty slower-than-expected return to top-line prominence for the domestic turnaround, even though margin gains have been highly impressive, even in the current high costing environment and comparisons will continue to ease as we move through FY13...As such, we believe mgmt has provided investors with a highly achievable baseline from which they can rebuild credibility as visibility (and returns) improve over time; we would use (today's dip) to become more aggressive in the name, as GES remains, to us, a compelling story with multiple catalysts."
Brean lowers FY13 from $3.50 to $2.61 and FY14 from $3.90 to $3.08.
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 $36.70 yesterday.
Analyst, Eric Beder, said, "We are reiterating our Buy rating on GES, but lowering our PT and taking a materially more conservative tack to our previously Street high FY13 and FY14 projections after GES registered in-line Q4 results, but provided what we view as highly conservative guidance, as (1 mgmt remains nervous over European economic recovery; 2) believes that FX and increased marketing spend for their 30th anniversary will lead to a $0.35-0.40 hit to EPS and 3) is now assuming a slighty slower-than-expected return to top-line prominence for the domestic turnaround, even though margin gains have been highly impressive, even in the current high costing environment and comparisons will continue to ease as we move through FY13...As such, we believe mgmt has provided investors with a highly achievable baseline from which they can rebuild credibility as visibility (and returns) improve over time; we would use (today's dip) to become more aggressive in the name, as GES remains, to us, a compelling story with multiple catalysts."
Brean lowers FY13 from $3.50 to $2.61 and FY14 from $3.90 to $3.08.
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 $36.70 yesterday.
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