Jefferies Cuts Price Target on Prestige Brands (PBH) to $42 Following Soft 2Q
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Jefferies maintained an Underperform rating on Presitge Brands (NYSE: PBH), and cut the price target to $42.00 (from $45.00), following the company's 2Q earnings report. 2Q topline missed Street estimates by 1%, with lower GM% offset by lower A&P and SG&A, driving a ~0.5% EBITDA miss. A lower tax rate was a $0.02 help as EPS of $0.63 came in $0.02 ahead of the Street.
Analyst Kevin Grundy commented, "We maintain our Underperform rating on PBH post a low quality 2Q. At 18x adj. EV/ULFCF (~15% disc. to staples), PBH appears overvalued to us given -4% organic EBITDA declines since FY13 and flat underlying EBITDA/FCF growth in 1H/implied by FY17 guide. Edging down EBITDA est. 1-2% and our PT to $42 (-10% potential TSR) based on 20% disc. to peers on EV/ULFCF basis."
Shares of Presitge Brands closed at $46.43 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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