UPDATE: Morgan Stanley Initiates Guess at Underweight on Risks and Earnings Visibility

Morgan Stanley initiated coverage on Guess

with an Underweight rating and a $21 price target. Morgan Stanley noted, "Although cheap valuation makes the stock tempting, we believe GES contains the largest risks and lowest earnings visibility in our coverage universe. We believe the core businesses in US and Europe will continue to be pressured in the near term, leading to ongoing EPS shortfalls." Guess closed at $26.62 on Thursday.