Brean Capital today maintained a Buy rating on Guess (NYSE: GES) and raised its price target to $37.00 (from $28.00). Following Q1 results and comments by management, analyst Eric Beder thinks the worst is over for the company.
"While we do not expect much from 2Q, we do expect the company to soothe worries over management depth with hires of a new CFO and COO. Further, looking into the back half, with a deeper focus on denim, the full rollout of the value driven lines, a revival in higher margin accessories, very easy comparisons and highly muted guidance, we believe the pieces are in place for GUESS? to begin the long climb back to relevance and top and bottom line upside," said Beder.