UPDATE: Nomura Reiterates Buy Rating, Lowers PT on Express as Promotional Environment Takes Toll on 4Q Margin Guidance

In a report published Thursday, Nomura analyst Simeon A. Siegel reiterated a Buy rating on Express EXPR, but lowered the price target from $26.00 to $24.00. In the report, Nomura noted, “EXPR's +5% comp was unable to overcome the lofty expectations heading into the print, and we believe guidance for flat 4Q merch margins (driven by the promotional environment) weighed on shares. As we have noted, the promotional environment is rampant and, although we believe product continues to resonate, it is hard to sidestep the challenges faced across the mall. We expect management to announce a share repurchase authorization and take advantage of the sell-off as an opportunity, which, along with the paydown/refinancing of debt, should add EPS support.” Express closed on Wednesday at $19.00.