Deutsche Bank Starts Blue Nile (NILE) at Buy

September 21, 2012 8:22 AM EDT Send to a Friend
Get Alerts NILE Hot Sheet
Price: $29.98 +0.27%

Rating Summary:
    2 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 38 | New: 13
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Deutsche Bank initiates coverage on Blue Nile (NASDAQ: NILE) with a Buy rating and price target of $53.00

"NILE operates one of the best business models in all of e-commerce," said analysts.

"Oddly, the business model is similar to an airline: when input costs are rising at unsustainable inflationary rates, the company struggles to compete, but when costs reverse the model flourishes with growth and margins expanding," noted the report.

"2012 is firmly in the growth and margin expansion phase, which couldn’t come at a more important time in the company’s history as it embarks on a turn-around focused on increasing growth in its non-engagement business. We expect modest upside to estimates in 2H12 and shares remain attractively valued," said analyst Ross Sandler.

For an analyst ratings summary and ratings history on Blue Nile click here. For more ratings news on Blue Nile click here.

Shares of Blue Nile closed at $36.89 yesterday.

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