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 headlines generally favored Tuesday being another good day for the stock market. Instead, it was just a mixed day with modest point changes on either side of the unchanged mark for the major indices.
For the most part, the stock market was a sideshow. The main trading events were seen in the commodity and Treasury markets, both of which saw some decent-sized losses within their respective complex.
Dollar strength was at the heart of the weakness in ... More
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