PLCE Eyes Five-Month Highs on Price-Target Hike

The equity is coming off its best month since 2003

Deputy Editor
Dec 1, 2020 at 10:03 AM
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The shares of clothing company Children's Place Inc (NASDAQ:PLCE) are making a comeback today, up 8.1% at $46.47 at last check, following a price-target hike from Wedbush to $48 from $32. The security is now on track for its highest close in nearly five months. 

In fact, PLCE has enjoyed an impressive climb lately -- now more than double its late-August dip below the $20 region. Support at the 10-day has helped guide the equity higher, while former pressure at the 100-day captured a brief pullback in early November. Plus, Children's Place  stock just came off its best month since 2003, tacking on 70%. 

Should the stock continue its climb, other members of  the brokerage bunch could follow Wedbush's lead. Currently, just two analysts in coverage call it a "strong buy," compared to  five "hold" or worse ratings. Plus, coming into today, the 12-month consensus price target of $40.89 was a 4.9% discount to last night's close. 

A further unwinding of short interest could put some wind at PLCE's back, too. While short interest fell 18.2% during the last two reporting periods, the 5.3 million shares sold short still make up 38.7% of the stock's available float. This means it would take almost four days to  buy back these bearish bets, leaving plenty of room for a short squeeze to propel the shares higher.

 

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