Jefferies Likes Guess, Sees $48 On Shares (GES)

Jefferies is out with a research report on Guess GES after the clothing retailer reported earnings after the bell yesterday. It has a $48 target and a Buy rating on shares. In a note to clients, Jefferies writes, "We like GES for its well positioned portfolio of global businesses, while shares remain extremely cheap. Risk/reward very attractive with upside ~30% vs. downside of <10%. $48 PT and '10/'11 EPS maintained." Jefferies goes on to write, "Ever since our March '09 initiation with a Buy rating, we have viewed Guess the same way. We see the company as an attractive growth story with a well-diversified business model. A global multi-concept and multi-channel distribution strategy helps the company target multiple customer segments and mitigate risk. Moreover, as the market sees that most of the retail turnaround stories are long in the tooth, we believe growth names like GES, selling at attractive valuations especially after the recent sell-off related to the Euro, should soon outperform once again." Shares of Guess closed at $38.23 yesterday.