G-III Apparel Group (GIII): Cutting PT By 20% - Brean Capital

August 31, 2016 10:01 AM EDT
Get Alerts GIII Hot Sheet
Price: $26.56 -1.56%

Rating Summary:
    10 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Brean Capital analyst, Eric Tracy, reiterated his Buy rating on shares of G-III Apparel (NASDAQ: GIII) but cut the price target to $41.00 (from $51.00) following G-III's 2Q miss and guide down. The analyst is taking a "more cautious view of the risk/reward reflecting what has become somewhat of a show-me story NT, given 1) still high 4Q bar, 2) rationalizing dept store sector, and 3) cyclical/structural headwinds facing retail biz. Even so, with shares trading down more than 20% yesterday, we remain constructive on the setup longer term, given prospects for material share upside should mgmt. execute on stabilizing core and delivering on Donna Karan rev/EBIT targets (targeting $750M, mid-teens OM in Year 3).

The new $41 PT is based on 13x FY19 EPS.

For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.

Shares of G-III Apparel closed at $33.14 yesterday.

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