We are reiterating our Buy rating, $40 price target and projections for Express with the company announcing 3QFY23 (October) results before the open on Thursday. With a new Chief Executive Officer and Head Merchant and the Chief Financial Officer recently resigning for another opportunity, the 3Q call will be the first pronouncements from new management. We believe the company will continue with the ongoing program of cost savings (up to $80 million in FY23, $120 million in FY24 and $200 million in FY25) and further shift the product mix towards more fashion basics at compelling pricing. Further, we believe there remain opportunities for incremental acquisition opportunities after the recent Bonobos transaction and the potential to further the relationship with WHP Global to expand the Express brand internationally and into new domestic categories. As such, and with operating comparisons continuing to ease and the product mix (especially in women's) improving, we reiterate our Buy rating and pricetarget for EXPR.
27 Nov 2023
EXPR; 3Q Preview: New Management Set to Introduce Themselves; Reiterate Buy, PT
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
EXPR; 3Q Preview: New Management Set to Introduce Themselves; Reiterate Buy, PT
- Published:
27 Nov 2023 -
Author:
Eric Beder -
Pages:
4
We are reiterating our Buy rating, $40 price target and projections for Express with the company announcing 3QFY23 (October) results before the open on Thursday. With a new Chief Executive Officer and Head Merchant and the Chief Financial Officer recently resigning for another opportunity, the 3Q call will be the first pronouncements from new management. We believe the company will continue with the ongoing program of cost savings (up to $80 million in FY23, $120 million in FY24 and $200 million in FY25) and further shift the product mix towards more fashion basics at compelling pricing. Further, we believe there remain opportunities for incremental acquisition opportunities after the recent Bonobos transaction and the potential to further the relationship with WHP Global to expand the Express brand internationally and into new domestic categories. As such, and with operating comparisons continuing to ease and the product mix (especially in women's) improving, we reiterate our Buy rating and pricetarget for EXPR.