UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on Children's Place Retail Stores
In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Children's Place Retail Stores (NASDAQ: PLCE), but lowered its price target from $58.00 to $50.00.
BMO Capital noted, “The degree of impact from the storm was greater than we anticipated, but as 30% of the company's total revenue is attributable to the Northeast in 4Q, we understand management's conservatism with respect to 4Q guidance. The backlog of inventory in the children's space coming out of the storm heightened promotional environment early on. The company noted that sales trends have now returned to more normalized levels, and, in our view, the easy December and January comparison to last year's warm weather could allow for some reprieve as the quarter wears on.”
Children's Place Retail Stores closed on Thursday at $48.91.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.