JP Morgan Remains Neutral on Gymboree

The Gymboree Corporation

has a more premium price positioning, according to JP Morgan, but had a slower start to back-to-school season. Inventory is being built in the second half of 2010 and GYMB plans to become more aggressive on price, JP Morgan reports. Estimates for 2010 are currently $3.97 EPS, assuming -1% in comps and margins at 16.6% (up 50bps) while for 2011 EPS remain at $4.30 with margins down 60bps to 16%. JP Morgan remains Neutral and maintains its $43 price target. The Gymboree Corporation closed yesterday at $40.25. See Some of the Top Moving Indexes