Children’s Place upgraded to Neutral from Sell at B. Riley

B. Riley analyst Jeff Lick upgraded Children’s Place to Neutral from Sell with a price target of $7, down from $12. The company last week indicated its annual filing would be delayed until May 3 and announced an additional $90M of unsecured financing from its controlling shareholder, Mithaq, the analyst tells investors in a research note. The firm says few retailers “at this stage of distress” can access the type of capital Children’s Place now has. While questions still remain about the short-term damage done to and long-term economics of its business model, if the company can achieve Riley’s “muted” 2024 and 2025 estimates, there is a chance “this odd and unlikely set of circumstances may yield a positive outcome for shareholders in time,” the firm contends.