Piper Jaffray Upgrades Guess

Analyst Jeffrey Klinefelter says the apparel company will benefit from the strong denim cycle

Piper Jaffray upgrades Guess Inc. (GES ) to outperform from market perform.

Analyst Jeffrey Klinefelter says he believes there will be several catalysts for Guess in coming months. He thinks Guess retains a substantial mindshare in denim, during this very strong denim cycle.

He believes the company will benefit from a full year of premium Marciano product in its stores. He thinks with a negative pre-announcement in November, lackluster December sales expectations are already priced into the stock, and Guess is a compelling value at these levels.

Klinefelter sees 81 cents 2005 earnings per share. He maintains his $16 price target.

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