Goldman Sachs Sees 31% Upside in Childrens Place

Goldman Sachs sees 31 percent upside in Childrens Place Inc

over the next 12 months as "we are increasingly confident in the durability of the transformation, which inflected six months ago." Analyst Taposh Barl comments that an earnings beat coupled with a 15 percent sell off create an opportunity for investors to build their position. The research house outlines two catalysts. First, significant margin increases over the next several years. Goldman Sachs expects EBIT margin to increase from 7.1 percent to 8.8 percent by 2018. Second, the acquisition of a mall based apparel retailer. Barl's increase in price target from $74 to $93 is the result of increased EPS estimates and PE ratio increasing from 16 to 17. Shares of Childrens Place last traded at $71.02, down 0.04 percent in early Wednesday trade.