Gymboree surges on possible sale
An analyst says strong cash flow, a healthy balance sheet and good brand recognition could make the children's apparel company an attractive acquisition.
By Jeanine Poggi, TheStreet
The Wall Street Journal reported Thursday night that the retailer is exploring a possible sale to private investors.
"Given strong cash flow generation, a healthy balance sheet, core brand recognition and growth potential, Gymboree represents a palatable potential private transaction," Susquehanna analyst Thomas Filandro wrote in a note.
Filandro upped his price target on the stock to $60 from $48.
Shares of Gymboree were soaring 16.1% to $48.24 in midday trading and driving up shares of rival Children's Place (PLCE), which was gaining 5.3% to $51.35.
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[BRIEFING.COM] The stock market ended the midweek session on a mixed note. Blue chip listings bolstered the Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%), while the Russell 2000 (-0.4%) and Nasdaq Composite (-0.02%) underperformed.
Equity indices began the day in the red, but wasted no time regaining their flat lines. Small-cap stocks were not as fortunate as the Russell 2000 spent the day in the red.
Upon returning into positive territory, the key indices were ... More
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