Guess (GES) Stock Slumps, Downgraded at Piper Jaffray

Guess (GES) stock is falling in pre-market trading Tuesday as Piper Jaffray reduced its rating on shares to ‘underweight’ from ‘neutral.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Guess (GES) - Get Report are dropping 4.75% to $14.65 in pre-market trading Tuesday as Piper Jaffray cut its rating on the stock to "underweight" from "neutral," the Fly reports.

The firm also lowered its rating to $12 from $15 on shares of the Los Angeles-based retailer.

Piper Jaffray is "incrementally wary" on Guess's turnaround plan to get to 7.5% EBIT by 2018, according to the Fly.

The firm also sees negative catalysts accelerating over the next 12 months.

Additionally, the company's store growth is accelerating despite a contracting industry, and Piper Jaffray described Guess's inventory levels as "bloated."

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.

The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that were evaluated.

But the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: GES

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