UPDATE: Monness Crespi Hardt Reiterates Buy Rating, Lowers PT on Children's Place Retail Stores

In a report published Friday, Monness, Crespi, Hardt & Co. reiterated its Buy rating on Children's Place Retail Stores PLCE, but lowered its price target from $64.00 to $59.00. Monness Crespi Hardt noted, “Given easy comparisons over the remainder of 4QFY12, we think the company's revised guidance could prove overly conservative. In addition, we expect solid same-store sales growth going forward as PLCE anniversaries a significant reduction in Canadian inventories and increases the amount of made for outlet product in its stores. Longer term, we believe management can increase the company's operating margin to the low double digit range which would lead to earnings power of approximately $6.00 per share. The balance sheet is strong with $8.36 per share of net cash. PLCE shares are relatively inexpensive at 4.8x EV/EBITDA. Our $59 price target is based on 13x our FY13 EPS estimate of $3.75 plus $10 per share of projected year end cash.” Children's Place Retail Stores closed on Thursday at $48.91.