UBS reiterates Neutral rating on Guess stock amid take-private deal

Investing.com - UBS has reiterated its Neutral rating and $16.75 price target on Guess (NYSE:GES) following the company’s take-private transaction announcement. The stock currently trades at $17.06, slightly above both UBS’s target and InvestingPro’s Fair Value estimate, after posting impressive gains of over 59% in the past six months.

On August 20th, 2025, Guess announced it had reached an agreement for a take-private transaction that will pay current shareholders $16.75 per share, representing a 25% premium to the company’s 15-day volume-weighted average price. The offer comes as the stock trades near its 52-week high of $17.43, with a current P/E ratio of 15.91 and a notable dividend yield of 5.28%.

Under the deal’s structure, Authentic Brands Group (ABG) will own 51% of Guess’ intellectual property, while the "Rolling Stockholders" group will control 49% of the intellectual property and 100% of the operating company. This group includes Maurice Marciano, Paul Marciano, Nicolai Marciano, CEO Carlos Alberini, and certain of their respective trusts. InvestingPro data shows Guess has maintained a solid financial position with liquid assets exceeding short-term obligations and a current ratio of 1.52.

The transaction is expected to close in the fourth quarter of calendar year 2025, at which point Guess will become a privately held company and no longer trade on public markets.

UBS noted that Guess shares will likely trade based on deal dynamics rather than fundamentals, and the firm does not expect the company’s upcoming third-quarter report to significantly impact sentiment or stock price.

In other recent news, Guess?, Inc. reported impressive third-quarter financial results, surpassing expectations. The company achieved a 7% increase in revenue, reaching $791.4 million, which exceeded analyst projections of $767.9 million. Additionally, Guess? delivered adjusted earnings per share of $0.35, outperforming the consensus estimate of $0.25. This growth was largely fueled by strong performances in the Americas Wholesale and Europe segments, with Americas Wholesale revenues climbing 28% and Europe revenues rising 10% in U.S. dollars. The revenue increase was 5% in constant currency compared to the previous year. Despite these positive results, the company’s shares experienced a slight decline following the earnings report. These recent developments highlight the company’s robust performance in key markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.