JP Morgan Remains Neutral on Gymboree

The Gymboree Corporation (NASDAQ: GYMB) has a more premium price positioning, according to JP Morgan, but had a slower start to back-to-school season.

Inventory is being built in the second half of 2010 and GYMB plans to become more aggressive on price, JP Morgan reports.

Estimates for 2010 are currently $3.97 EPS, assuming -1% in comps and margins at 16.6% (up 50bps) while for 2011 EPS remain at $4.30 with margins down 60bps to 16%.

JP Morgan remains Neutral and maintains its $43 price target.

The Gymboree Corporation closed yesterday at $40.25.

See Some of the Top Moving Indexes Here.