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Benchmark Boosts Price Target on PriceSmart (PSMT), Raises Comp Estimate to 10%

September 14, 2011 11:54 AM EDT
PSMT Hot Sheet
Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Benchmark is reaffirming its Buy rating on shares of PriceSmart (NASDAQ: PSMT) while hiking its price target up from $70 to $87.

Following market checks, the firm is now more bullish on the company and raised its 2012 comp estimate from low single digit growth to 10 percent. Benchmark also increased its 2012 EPS estimate from $2.45 to $2.71. Revenue for 2012 is predicted to grow by 15 percent. The consensus for 2012 is currently $2.59 in EPS and $1.93 billion in revenue.

The firm notes that its previous comp estimate was to conservative as it now forecasts that the U.S. economy wont near a recession like it experienced in 2008 and 2009 within the next six months. An analyst at Benchmark states that the new 10 percent comp growth assumption may also prove to be conservative.

For more ratings news on PriceSmart click here and for the rating history of PriceSmart click here.

Shares of PriceSmart closed at $69.74 yesterday, with a 52 week range of $27.57-$69.76.


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