UPDATE: JP Morgan Cuts PT to $20 on Express on Promotionas, Reiterates Overweight on Potential Upside

JP Morgan maintained Express

with an Overweight rating and lowered the price target from $23.00 to $22.00. JP Morgan analyst Simeon A. Siegel wrote, "Interestingly, with incremental GM expenses and weaker-than-expected sales trends driving a disappointing guide, most of our post-earnings discussions with investors centered around whether this was the opportunity to begin a position. We recognize that with deeper promotions driving 1Q merch margin pressure, watching for growing inventory and markdown levels will be crucial. However, the fact that management was optimistic about customer reception to product dominated our conversations and assuming promotional cadence remains controlled, we believe shares have support." Express closed at $18.08 on Thursday.