MKM Partners Cuts Price Target on DSW, Inc. (DSW) to $24 Ahead of 1Q Report

MKM Partners maintained a Neutral rating on DSW Inc. (NYSE: DSW), and cut the price target to $24.00 (from $30.00), ahead of the company's 1Q earnings report. MKM continues to expect 1Q16 EPS of $0.47, down from $0.51 last year and $0.01 above the Street. DSW is scheduled to report earnings on May 24th.

Analyst Patrick McKeever commented, "Visibility is not great, and we believe some of the same forces that have hurt performance across the department store space and beyond also hurt DSW in the quarter. But we are not expecting a huge miss either and think the near-term setup in the stock (down 28% from its mid-March highs vs. the SPX up 2%, now trades at 12.2x our 2017 EPS estimate vs. a five-year median of 17.4x) could drive a bounce on any good news. That said, we are also lowering our fair value estimate from $30 to $24 (13.5x our 2017E EPS vs. a prior 17x multiple assumption) to reflect multiple compression across retail and maintain a generally cautious view toward FY16. Our fair value estimate implies 12% upside."

For an analyst ratings summary and ratings history on DSW Inc. click here. For more ratings news on DSW Inc. click here.

Shares of DSW Inc. closed at $21.36 yesterday.

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