UBS analyst Jay Sole reiterated a Neutral rating and $3.25 price target on The Children's Place (NASDAQ: PLCE).

The analyst commented, "PLCE's 2Q results remained challenged, as sales declined 19% y/y because of weaker DTC demand, reduced wholesale shipments and a delayed e-commerce transition. Adj. EPS exceeded our estimate, supported by a $39M tariff refund and lower-than-expected expenses, while underlying gross margin deteriorated materially. Looking into 2H FY26, we expect sales and margins to remain under pressure, which supports our cautious outlook on the pace of EPS recovery. However, lower inventory, improved cash use and the potential for additional cost savings provide some offsets to the weak operating trends. This is why we see a balanced upside/downside skew and rate PLCE Neutral."

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Shares of The Children's Place closed at $2.47 yesterday.