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Stock Market & Financial Investment News

News Breaks
June 25, 2014
13:24 EDTZU, CRI, PLCEzulily rallies after Goldman ups rating to Buy
Shares of Internet-based retailer zulily (ZU), which focuses on children's apparel, are climbing after Goldman Sachs upgraded the stock in a note to investors earlier today. WHAT'S NEW: zulily is poised to generate $1B of sales this year, its fifth year in business, making it only the third retailer to reach the sales milestone that quickly, after Gap's (GPS) Old Navy and Amazon.com (AMZN), Goldman Sachs analyst Taposh Bari wrote in a note to investors. zulily is likely to grow faster than the overall industry, as its multiple initiatives should enable it to attract more customers than expected into 2015, the analyst wrote. Additionally, the stock has reached an attractive entry point following its recent pullback, Bari stated. Furthermore, the company will start offering other types of products such as women's apparel and toys, the analyst believes. He upgraded the stock to Buy from Neutral and raised his price target on the shares to $50 from $47. WHAT'S NOTABLE: Although zulily has "agile merchandising" and a strong presence on the mobile Internet, the company also has relatively limited products and "lagging" delivery times, Bari reported. As a result, the threat posed by zulily to traditional children's retailers is somewhat limited, according to the analyst. The retailers best suited to fend off the threat posed by zulily are those with valuable brands, a strong online presence, and "appropriate" retail distribution systems, Bari believes. Carter's (CRI) meets all of these criteria and is a "winner," partly because of its national wholesale operation and thriving online business, according to Bari. Conversely, Children's Place (PLCE) is in a more vulnerable position, since it has similar products to those offered by zulily, along with deteriorating profit margin trends and expensive stores in malls, Bari stated. He kept a Buy rating on Carter's and a Sell rating on Children's Place. PRICE ACTION: In mid-afternoon trading, zulily jumped 10% to $40, while Carter's was flat at $69.50 and Children's Place fell 1% to $50.
News For ZU;PLCE;CRI From The Last 14 Days
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June 29, 2015
12:38 EDTPLCEChildren's Place management to meet with Mizuho
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June 23, 2015
19:47 EDTZUzulily to test returns program, WSJ says
zulily is reconsidering its no-returns policy and will implement a testing program for online returns, reports the Wall Street Journal. Reference Link
June 18, 2015
10:01 EDTCRIOn The Fly: Analyst Downgrade Summary
Today's noteworthy downgrades include: Arch Capital (ACGL) downgraded to Market Perform from Outperform at BMO Capital... Bankrate (RATE) downgraded on revenue headwinds at SunTrust... Carter's (CRI) downgraded to Neutral from Buy at Sterne Agee CRT... Lumenis (LMNS) downgraded to Market Perform from Outperform at Wells Fargo... Nimble Storage (NMBL) downgraded to Hold from Buy at Wunderlich... Southwest (LUV) downgraded to Underweight from Overweight at Barclays... Spirit Airlines (SAVE) downgraded to Neutral from Outperform at Credit... Webster Financial (WBS) downgraded to Underweight from Equal Weight at Morgan Stanley.
05:47 EDTCRICarter's downgraded to Neutral from Buy at Sterne Agee CRT
Sterne Agee CRT downgraded Carter's to Neutral citing the greater than 50% rally in shares over the past 12 months. Sterne believes the company's "solid" fundamentals are now reflected in the stock price and it notes shares are above its $105 price target.

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