Erinn Murphy of Piper Jaffray commented on Guess?, Inc. (NYSE:GES) as she lowers her expectations for the company. Guess lowered its 2017 EPS estimates from $0.58 to $0.54 and 2018 EPS estimates from $0.72 to $0.60.

The analyst explains that she is wary about the company’s new turnaround plan. Murphy highlights her specific concerns: “1) heightened risk of licensing stream, which is propping up profitability & supporting the company’s annual $0.90 dividend with the Jan 1, 2017 renewal of the watch license… 2) our checks suggest Guess will anniversary price reductions in Europe in FW-16 and in Asia in SS-17 leading to tougher Y/Y int’l comp comparisons; 3) store growth is accelerating despite a contracting industry; and 4) bloated inventory levels.”

Murphy downgrades the stock from Neutral and Underweight, lowering her price target from $15 to $12.

According to TipRanks, 2 analysts are bullish on Guess, 2 are neutral, and 1 is bearish. The average 12-month price target is $18, marking a 24% potential upside from current levels.