Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, $32.50 price target and raising our projections to reflect the announced acquisition of leading premium ($195+) denim player rag & bone by Guess?</li><li>and a joint venture with leading brand licensor WHP Global.</li><li>We view this acquisition, Guess?' first, as an accretive winner, offering multiple (and material) expansion opportunities which leverage Guess?' strong international presence, infrastructure, category expansion and licensing ability and position as a leading global lifestyle brand retailer.</li></ul>

We are reiterating our Buy rating, $32.50 price target and raising our projections to reflect the announced acquisition of leading premium ($195+) denim player rag & bone by Guess?and a joint venture with leading brand licensor WHP Global.We view this acquisition, Guess?' first, as an accretive winner, offering multiple (and material) expansion opportunities which leverage Guess?' strong international presence, infrastructure, category expansion and licensing ability and position as a leading global lifestyle brand retailer.

GES: Rag & Bone an Auspicious First Acquisition; Reiterate Buy, $32.50 PT

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

American Eagle Outfitters / Equity Bottom-Up

<ul><li>This is our first report on apparel major, American Eagle Outfitters.</li><li>In the third quarter of 2023, American Eagle Outfitters achieved record revenue of $1.3 billion, buoyed by both strong in-store performance and a 10% growth in its digital channel.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

This is our first report on apparel major, American Eagle Outfitters.In the third quarter of 2023, American Eagle Outfitters achieved record revenue of $1.3 billion, buoyed by both strong in-store performance and a 10% growth in its digital channel.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

American Eagle Outfitters: Initiation of Coverage - Inside the Store Remodels Driving Unprecedented Sales Surges! - Major Drivers

<ul><li>We are reiterating our Buy rating, $32.50 price target and projections after visiting Guess? Inventories, with the exception of outerwear, were in solid shape and should, after end of season sales, be clean for Spring.</li><li>Further, the company has already begun to slowly flow in new Spring items, with patterned looks and dresses.</li></ul>

We are reiterating our Buy rating, $32.50 price target and projections after visiting Guess? Inventories, with the exception of outerwear, were in solid shape and should, after end of season sales, be clean for Spring.Further, the company has already begun to slowly flow in new Spring items, with patterned looks and dresses.

GES: Snapping the Store: Picking the Key Winners; Reiterate Buy, $32.50 PT

<ul><li>We are reiterating our Buy rating and $20 price target for Express, but lowering our 4QFY23 projections after visiting stores in Long Island and Connecticut.</li><li>That said, we believe the near term impact will be to reduce gross margins; as such, while we are maintaining our 4Q23 top line projections, we are lowering our gross margin projections, which results in increased 4Q losses.</li><li>We believe the negative impact will be localized into FY23 and are leaving our FY24 projections unchanged.</li></ul>

We are reiterating our Buy rating and $20 price target for Express, but lowering our 4QFY23 projections after visiting stores in Long Island and Connecticut.That said, we believe the near term impact will be to reduce gross margins; as such, while we are maintaining our 4Q23 top line projections, we are lowering our gross margin projections, which results in increased 4Q losses.We believe the negative impact will be localized into FY23 and are leaving our FY24 projections unchanged.

EXPR: Snapping the Store; Clearing Out for a New Year; Reiterate Buy Rating, PT

<ul><li>We are reiterating our Buy rating, $32.50 price target and projections for Guess? Further, we believe there remains opportunities to continue to upgrade the offerings in the domestic retail and wholesale channel to improve overall returns.</li><li>As such, and with GES offering a 5% dividend yield and a Stock Price/FY25 earnings valuation of 8X, we believe the risk/reward remains outstanding.</li></ul>

We are reiterating our Buy rating, $32.50 price target and projections for Guess? Further, we believe there remains opportunities to continue to upgrade the offerings in the domestic retail and wholesale channel to improve overall returns.As such, and with GES offering a 5% dividend yield and a Stock Price/FY25 earnings valuation of 8X, we believe the risk/reward remains outstanding.

GES: 2024 Signposts: Remain Focused on Winning; Reiterate Buy Rating, $32.50 PT

United States

American Eagle Outfitters, Inc. retails men's and women's casual apparel, footwear, outerwear, and accessories.  The Company's products include jeans, khakis, T-shirts, and other similar apparel.  American Eagle operates in the United States.

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American Eagle Outfitters (AEO US)

GES: Rag & Bone an Auspicious First Acquisition; Reiterate Buy, $32.50 PT

We are reiterating our Buy rating, $32.50 price target and raising our projections to reflect the announced acquisition of leading premium ($195+)...

Small Cap Consumer Research

American Eagle Outfitters: Initiation of Coverage - Inside the Store Remodels Driving Unprecedented Sales Surges! - Major Drivers

This is our first report on apparel major, American Eagle Outfitters. In the third quarter of 2023, American Eagle Outfitters achieved record...

Baptista Research

GES: Snapping the Store: Picking the Key Winners; Reiterate Buy, $32.50 PT

We are reiterating our Buy rating, $32.50 price target and projections after visiting Guess? Inventories, with the exception of outerwear, were in...

Small Cap Consumer Research

EXPR: Snapping the Store; Clearing Out for a New Year; Reiterate Buy Rating, PT

We are reiterating our Buy rating and $20 price target for Express, but lowering our 4QFY23 projections after visiting stores in Long Island and...

Small Cap Consumer Research

GES: 2024 Signposts: Remain Focused on Winning; Reiterate Buy Rating, $32.50 PT

We are reiterating our Buy rating, $32.50 price target and projections for Guess? Further, we believe there remains opportunities to continue to...

Small Cap Consumer Research

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