NEW YORK (TheStreet) -- Express (EXPR - Get Report) stock closed up 1.41% to $17.23 on heavy volume in Friday's trading session, despite being downgraded to "sell" from "neutral" at Goldman Sachs yesterday evening.
The firm cut its price target to $5 from $15 on the stock.
Express will have to contend with pressures affecting mall-based companies heading into this holiday season, Goldman Sachs analyst Lindsay Drucker Mann said in a note, Barron's reports.
Specifically, the Columbus, Ohio-based retailer faces declining mall traffic, e-commerce adoption and lower cost competition, Drucker adds, Barron's notes.
Express has a "large mall-based store fleet," and competes with retailers such as Forever 21, H&M, Zara and Primark for customers, which make it especially vulnerable to industry headwinds, Drucker said, according to Barron's.
About 3.90 million shares of Express were traded today, well above the company's average volume of roughly 1.70 million shares.
Separately, TheStreet Ratings team rates EXPRESS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate EXPRESS INC (EXPR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EXPR's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 206.2% when compared to the same quarter one year prior, rising from $6.87 million to $21.03 million.
- Net operating cash flow has significantly increased by 61.46% to $58.12 million when compared to the same quarter last year. In addition, EXPRESS INC has also vastly surpassed the industry average cash flow growth rate of -11.31%.
- You can view the full analysis from the report here: EXPR