UBS lowered the firm's price target on Children's Place (PLCE) to $3.50 from $4.50 and keeps a Neutral rating on the shares. The earnings miss was driven by lower wholesale revenue from Amazon (AMZN) inventory rebalancing and increased markdowns, with continued pressure on sales and margins expected in Q1, the analyst tells investors in a research note. Despite near-term challenges, leadership changes, strategic improvements, and cost recovery initiatives could support a more balanced risk-reward outlook as the year progresses, the firm says.
