Brean Capital Cuts Price Target on Perry Ellis Int'l (PERY) to $25 Following 2Q EPS Beat

August 19, 2016 11:29 AM EDT
Get Alerts PERY Hot Sheet
Price: $23.39 -0.43%

Rating Summary:
    6 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Brean Capital maintained a Buy rating on Perry Ellis Int'l (NASDAQ: PERY), and cut the price target to $25.00 (from $26.00), following the company's 2Q earnings report. PERY reported EPS of $0.15, well above the consensus expectations of $0.01. Mgmt maintained EPS guidance at $1.95-$2.00, but lowered rev guide for FY17 to $885M-$890M (vs. prior $910M-$915M).

Analyst Eric Tracy commented, "PERY delivered 2Q results that came in favorable to our/cons expectations, as better-thanfeared rev decrease (-5.5% vs. our -7%, in line w/ cons), continued tight inventory mgmt, and disciplined expense control drove a material EPS beat ($0.15 vs. our/cons $0.03/$0.01). Even so, shares saw material retrenchment (traded down -10% Thursday) as mgmt lowered FY17 rev guidance to $885M-$890M (vs. prior $910M-$915M) on a softer GBP/ uncertain macro in postBrexit Europe and retail exit headwinds, but maintained EPS guidance for $1.95-$2.00. While we acknowledge visibility into FY17 rev guide is somewhat murky, we continue to believe mgmt is largely making the right decisions to re-position the brand, and with shares trading just 9x our FY18 EPS estimate of $2.11, view sentiment as largely washed out. As such, we are maintaining our Buy rating but are lowering our TP to $25 (vs. prior $26), still based on shares trading at 12x our lowered FY18 EPS est."

For an analyst ratings summary and ratings history on Perry Ellis click here. For more ratings news on Perry Ellis click here.

Shares of Perry Ellis closed at $19.09 yesterday.

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