Children’s Place Gets a Buy Rating from B.Riley FBR

B.Riley FBR analyst Susan Anderson reiterated a Buy rating on Children’s Place (NASDAQ: PLCE) today and set a price target of $167. The company’s shares opened today at $126.40.

Anderson said:

“The Children’s Place (PLCE) reported 1Q18 EPS of $1.87, below B. Riley FBR/consensus estimates of $2.22/$2.21 and guidance of $2.12 to $2.22 (prior note), driven by an abnormally cold spring where management noted a 30-point spread between regions with more seasonal weather and they saw an almost 50-point swing in comp once weather turned warm the last week of April. Despite the lower 1Q, PLCE reiterated FY18 EPS guidance of $7.95–$8.20 vs. B. Riley FBR/ consensus of $8.20/$8.16, with the lower tax rate (33c benefit to 2019) now offsetting the miss in 1Q. While management expects to get a good portion of the sales/margin back in 2Q as comps have turned with warmer weather (+24% 2QTD), they do not expect to recoup all of it.”

According to TipRanks.com, Anderson is a 4-star analyst with an average return of 4.5% and a 55.4% success rate. Anderson covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Abercrombie Fitch.

Currently, the analyst consensus on Children’s Place is Moderate Buy and the average price target is $142.40, representing a 12.7% upside.

In a report issued on May 13, Oppenheimer also upgraded the stock to Buy with a $150 price target.

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Based on Children’s Place’s latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $31.54 million. In comparison, last year the company had a net profit of $36.23 million.

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The Children’s Place, Inc. engages in the provision of apparel, accessories and footwear for children. It also designs, contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Place and Baby Place. The company was founded in 1969 and is headquartered in Secaucus, NJ.