UBS raises The Children’s Place stock price target to $7 on sales beat

Investing.com - UBS has raised its price target on The Children’s Place (NASDAQ:PLCE) to $7.00 from $6.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the company currently trades near its Fair Value, with analysts maintaining a Hold consensus recommendation.

The adjustment follows The Children’s Place’s second-quarter sales beat, which prompted UBS to increase its fiscal year 2025 sales outlook for the children’s apparel retailer.

UBS also cited expectations for increased tariff cost mitigation as a factor in its decision to raise the price target by $1.

Despite the improved price target, UBS anticipates The Children’s Place will continue facing top-line pressure throughout fiscal year 2025 due to the challenging competitive environment in the children’s apparel sector.

The Children’s Place stock has declined 38% year-to-date, underperforming compared to the S&P 500’s 11% gain, with UBS indicating that downside risks remain sufficient to maintain its Neutral stance on the stock.

In other recent news, The Children’s Place has been navigating significant developments. UBS has maintained its Neutral rating on the company, setting a price target of $6.00, as the retailer continues its business restructuring. The investment firm anticipates a 10-cent loss per share for the second quarter of 2025, citing ongoing challenges in sales trends and tariffs impacting earnings potential. Additionally, the board of directors approved a new compensation package for Executive Vice Chairman Muhammad Asif Seemab. Effective August 1, 2025, Mr. Seemab will receive an annual cash payment of $280,000, replacing previously forfeited director equity compensation, along with a $100,000 annual cash retainer for his vice chairman role.

In another development, Children’s Place appointed CFO John Szczepanski as the principal accounting officer, following the departure of former Chief Accounting Officer Laura Lentini. The company clarified that Lentini’s departure was not due to any disagreements over operations, policies, or practices. These recent changes reflect the company’s ongoing efforts to stabilize and adapt its management and financial strategies.

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