By Christiana Sciaudone
Investing.com — Children’s Place (NASDAQ:PLCE) popped more than 8% after getting a Street-high price target and two upgrades.
Wedbush and Monness, Crespi and Hardt both bumped their ratings to buy-equivalents, with the former more than tripling the price target to $150 from $48. Shares are at a two-year high.
The Children’s Place saw its first loss in four years for the quarter ended in April 2020, also known as a good month-plus into the pandemic. It has since seen a recovery in profit and sales despite so many kids out of school, parties, recitals and other occasions that would normally require snazzy new outfits. Or, really, anything but pajamas.
“The company deserves high marks in our view, not only for weathering a pandemic that canceled in-person learning but also for reinventing the company and ultimately positioning the company well for long-term success, post-pandemic,” said Wedbush analyst Jennifer Redding in a note, according to StreetInsider. “Digitalizing the business and fleet optimization are key strategies now well underway, making us bullish on Children’s Place over the long-term in a normalized environment.”
The company is set to publish earnings on Thursday, with analysts expecting a loss of 19 cents per share on sales of $333 million, according to data compiled by Investing.com.
It is “the best-in-class specialty retailer and model to own” over the long-term thanks to the leadership of Chief Executive Officer Jane Elfers, Redding wrote. The short-term also looks with consensus estimates far too low ahead of an actual back-to-school season ahead, not to mention the holidays, which will likely be celebrated in joyous fashion.
Incremental monthly income as high as $300 per kid, per family starting in July as child tax credits may also be a boon.
Children’s Place Rallies on Street-High Price Target, Buy Ratings
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