Jefferies Cuts Price Target For Guess: Retains ‘Buy’ Rating (GES)

According to a research report released today, Guess GES has a well-diversified global portfolio. Jefferies & Co. has stated that the company's stock is oversold due to its foreign exchange position, hence now is a good entry point to initiate a position in the stock. Guess also announced strong quarterly results. Its retail comps and wholesale orders were better than expected. The company is likely to continue its good performance. However, Guess has provided its Q2 EPS guidance at 65-68 cents, below consensus estimates of 77 cents. Jefferies has reiterated its ‘Buy’ rating for the stock but has revised its price target from $55 to $48. The new price target is based on a 15x multiple of 2011 EPS and it is a 7x multiple of EV/EBITDA.