Children's Place falls after B.Riley downgrades to 'sell'

Children's Place

13/02/2024 10:52

** Shares of apparel retailer Children's Place  PLCE.O  drop
~11% at $14.57 premarket
    ** Brokerage B. Riley Securities downgrades stock to "sell"
from "neutral", cuts PT to $4 from $19
    ** "In our view, any new money invested into PLCE will be
extremely dilutive to the current equity" - Jeff Lick, analyst
with B.Riley
    ** Adds, stretched payables, delayed shipments, increased
shrink among others are likely to weigh on co's upcoming
quarters
    ** Brokerage also says, PLCE will need to persuade new
capital to give it credit for $50 mln to $75 mln to dilute
current equity holders by 50% or more
    ** Co's shares plunged to 21-yr low on Friday after
forecasting Q4 adj. operating loss compared with prior forecast
of adj. operating profit 
    ** In 2023, stock fell nearly 36%
    

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))