UPDATE: Wunderlich Securities Initiates Coverage on Guess? with Buy Rating, $31 PT on Positive Outlook

In a report published Thursday, Wunderlich Securities analyst Eric Beder initiated coverage on Guess? GES with a Buy rating and $31.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of GUESS?, Inc. (GES) with a Buy rating and a $31 price target, or 15.6x our FY16 EPS of $1.98. We believe, after a long period of underperforming in the United States and Europe, that the company is beginning to turn domestically under new fashion leadership, with Europe shaping up as a key positive for FY16. Further, we believe the company has continued to achieve progress in the omnichannel segment, which could drive stronger longer-term returns. With almost $5.50 per share in net cash, a dividend yield of 3.4%, and one of the most unappreciated Specialty Retailing stories on the Street (only 2 Buys out of 13 analysts covering the name [and 2 Sell ratings]), we believe the downside risk is limited and we would be buyers of GES shares.” Guess? closed on Wednesday at $25.04.