We are reiterating our Buy rating on GES, raising our price target to $37 (from $32.50) and rolling out FY26 projections after Guess? ended FY24 with a strong 4Q which easily beat both top and bottom line Street expectations and announced a $2.25 per share special dividend. Further, initial FY25 projections, which incorporate the acquisition of Rag & Bone, handily beat Street top line projections and bracket bottom line expectations, even as Guess? adds resources to drive Rag & Bone to higher overall levels going forward and launch Guess? Jeans worldwide. We believe Guess? continues to demonstrate the keys to registering strong results in the global apparel and accessories space, and we believe our projections remain conservative. We are raising our GES target price to $37 (from $32.50) or 6.3X our new FY26 EBITDA projection and reiterating our Buy rating.
21 Mar 2024
GES; 4Q Review: Best Still in Store for GUESS?; Reiterate Buy & Raising PT
TJX Companies (TJX:NYSE), 0 | TJX Companies Inc (TJX:NYS), 0 | ROSS STORES (ROST:NYSE), 0 | Ross Stores, Inc. (ROST:NAS), 0 | Tapestry Inc (TPR:NYSE), 0 | Tapestry, Inc. (TPR:NYS), 0 | American Eagle Outfitters (AEO:NYSE), 0 | American Eagle Outfitters, Inc. (AEO:NYS), 0 | LULULEMON ATHLETICA (LULU:NYSE), 0 | lululemon athletica inc. (LULU:NAS), 0 | PVH (PVH:NYSE), 0 | PVH Corp. (PVH:NYS), 0 | URBAN OUTFITTERS (URBN:NYSE), 0 | Urban Outfitters, Inc. (URBN:NAS), 0 | Guess? (GES:NYSE), 0 | Guess?, Inc. (GES:NYS), 0
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GES; 4Q Review: Best Still in Store for GUESS?; Reiterate Buy & Raising PT
TJX Companies (TJX:NYSE), 0 | TJX Companies Inc (TJX:NYS), 0 | ROSS STORES (ROST:NYSE), 0 | Ross Stores, Inc. (ROST:NAS), 0 | Tapestry Inc (TPR:NYSE), 0 | Tapestry, Inc. (TPR:NYS), 0 | American Eagle Outfitters (AEO:NYSE), 0 | American Eagle Outfitters, Inc. (AEO:NYS), 0 | LULULEMON ATHLETICA (LULU:NYSE), 0 | lululemon athletica inc. (LULU:NAS), 0 | PVH (PVH:NYSE), 0 | PVH Corp. (PVH:NYS), 0 | URBAN OUTFITTERS (URBN:NYSE), 0 | Urban Outfitters, Inc. (URBN:NAS), 0 | Guess? (GES:NYSE), 0 | Guess?, Inc. (GES:NYS), 0
- Published:
21 Mar 2024 -
Author:
Eric Beder -
Pages:
7
We are reiterating our Buy rating on GES, raising our price target to $37 (from $32.50) and rolling out FY26 projections after Guess? ended FY24 with a strong 4Q which easily beat both top and bottom line Street expectations and announced a $2.25 per share special dividend. Further, initial FY25 projections, which incorporate the acquisition of Rag & Bone, handily beat Street top line projections and bracket bottom line expectations, even as Guess? adds resources to drive Rag & Bone to higher overall levels going forward and launch Guess? Jeans worldwide. We believe Guess? continues to demonstrate the keys to registering strong results in the global apparel and accessories space, and we believe our projections remain conservative. We are raising our GES target price to $37 (from $32.50) or 6.3X our new FY26 EBITDA projection and reiterating our Buy rating.