Goldman Sachs Resumes on Carter's at Neutral on Valuation

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

with a Neutral rating and a $61 price target. Goldman Sachs reported that, "On its 4Q12 earnings call, CRI management guided for another year of doubledigit EPS growth in 2013. Guidance, which includes dilution from the Japanese licensee acquisition, calls for 15% EPS growth (19% excluding the dilution). While the guidance appears achievable, we believe management has set an ambitious plan for the year ahead with a number of initiatives on the table: distribution center transition, integration of the Japanese licensee, 13% square footage growth, and the consolidation of its headquarters. While confident in management's ability to execute this plan, we find it difficult to justify paying a premium multiple given a relatively elevated near-term risk profile.” Shares of Carter's closed at $57.41 on Thursday.