The Children's Place (PLCE) PT Lowered to $3.50 at UBS, Neutral Rating Reaffirmed

UBS analyst Jay Sole lowered the price target on The Children's Place (NASDAQ: PLCE) to $3.50 (from $4.50) while maintaining a Neutral rating.

The analyst commented, "PLCE's 4Q $1.05 miss vs. our forecast was mostly a result of 2 factors: 1) a decrease in wholesale revenue due to the rebalancing of Amazon inventory levels and 2) higher markdown sales. Looking into 1Q, we expect sales and margins to remain under pressure, and this is a key reason we lowered our EPS estimates and price target. However, PLCE has made a number of leadership appointments in February and, by 2H FY26, PLCE's new product and marketing strategy could start gaining traction. Also, PLCE should recoup much of the tariff cost in FY26 and also benefit from self-help cost savings initiatives. These potential positives may not be fully priced in after the stock's big drop. This is why we see a balanced upside/downside skew and rate PLCE Neutral."

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