Goldman Sachs Resumes Coverage on PLCE with a Sell Rating and $40 PT on Increasing Competition from Target and Carter's

In a report published by Goldman Sachs, analyst Taposh Bari resumed coverage on The Children's Place

with a Sell rating and a 12-month $40 price target. Goldman Sachs reported that, “Now in year four of CEO Jane Elfers' turnaround, investors still await fundamental improvement at PLCE. Sales per square foot and margins are both down during a period where many other retailers have recovered from the depths of the recession. Notwithstanding Ms. Elfers' efforts, we believe the absence of a recovery at PLCE is symptomatic of structural issues rather than a series of untimely incidents. Further, PLCE's vulnerability to competitor discounting, fashion and weather leads us to question the likelihood of a return to low-double-digit margins, which last occurred over a decade ago.” Shares of The Children's Place closed at $45.78 on Thursday.