B. Riley downgraded Children’s Place to Sell from Neutral with a price target of $4, down from $19. The company has run-rate EBITDA of ($3.5M), $265M of net debt, limited availability on its credit line, and a $50M-$75M imminent seasonal funding need, the analyst tells investors in a research note. The firm sees the probability that Children’s Place’s share price reaches $4 or less in the next 12 months as high and does not believe the upside potential is either high or likely enough to compensate for what would be a highly speculative investment thesis.
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