UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on Children's Place Retail Stores on 4Q EPS

In a report published Wednesday, BMO Capital Markets analyst John D. Morris reiterated a Market Perform rating on Children's Place Retail Stores

, but lowered the price target from $50.00 to $48.00. In the report, Morris noted, “4Q EPS came in at $1.15 (excluding $0.22 in one-time charges), exceeding expectations and guidance for $1.03-$1.06. Comps increased 4.3%, which was also b/t/e. PLCE changed its method of inventory accounting to the cost vs. retail method. Under this method, 4Q EPS was $1.02 vs. $0.84 last year. However, business fell off sharply in 1Q, with comps running down 8% quarter to date, confirming our caution on the name heading into the year. Following a mostly positive February, sales slowed significantly over the past two weeks, with colder weather negatively impacting sales of spring merchandise. As a result, management walked down 1Q EPS, guiding to $0.60-$0.65 on a negative HSD comp, and set guidance for FY2013 at $2.90-$3.10.” Children's Place Retail Stores closed on Tuesday at $44.51.