Ahead of the Bell: Children's Place
NEW YORK (AP) — An analyst started coverage of Children's Place Retail Stores Inc. with a "Buy" rating on Friday, saying that the retailer is in a good position as the number of children between the ages of 5 and 12 enters a growth phase.
Susan Anderson of Citi Investment Research said in a client note that the seller of children's clothing and accessories will be seeing its base of core customers grow over the next decade. This compares with flat growth over the prior decade.
The analyst says that Children's Place should also benefit from adding higher-margin products to its outlets and should begin to see revenue at its outlet and Canadian stores open at least a year improve, which will give a boost to total revenue.
Anderson gave the Secaucus, N.J.-based company a $71 price target.
Children's Place shares finished at $58.82 per share on Thursday after rising as high as $59.03 earlier in the session, its highest level since early 2007.