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.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.