Morgan Stanley Lowers PT on Children's Place Retail Stores to $52

Morgan Stanley is out with its report today on Children's Place Retail Stores

, lowering its PT to $52 from $54. In its report, Morgan Stanley writes, "PLCE reported 2Q11 EPS of $(0.38), in line with MS and 1c above the street, despite -5.6% comp decline (below –LSD guidance). Lower sales and higher SG&A dollars (-3c) were offset by GM expansion (+2c) and lower D&A (+1c) vs. our estimate. 3Q guidance: EPS $1.23-$1.28 (we est. $1.29); comp –LSD; GM expansion (3Q has the most oppty for GM improvement due to high MD rates LY, we est. GM +150bps vs. LY). The company raised bottom end of 2011 guidance 3c to $3.13- $3.25 & lowered FY comp guidance to –LSD from flat. We lower our 2011 EPS est. to $3.22 and our PT to $52." At the time of posting, shares of PLCE were trading at $39.21, down 0.98% from Thursday's close.