Brean Capital Cuts Price Target on Perry Ellis Int'l (PERY) to $25 Following 2Q EPS Beat
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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."
Shares of Perry Ellis closed at $19.09 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Brean Capital
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