Jefferies Remains Bullish on DSW (DSW) Following Meetings with Management

Jefferies reiterates a Buy rating and $44.00 price target on DSW Inc. (NYSE: DSW) after meeting with management. Analyst Edward Plank believes that DSW is organically in better shape than before and well positioned to capitalize on stronger trends.

Plank commented, "Simply put, this is a company aligning for the future. And while investments being made now may pressure underlying profitability this year (though we still see upside potential), the company is organically in better shape than before and well positioned to capitalize on stronger trends, better closeout execution, and relationships with vendors. The bear case for DSW is built around market share losses to online retailers, declining strip center traffic, and vendors pursuing direct-toconsumer distribution. While we acknowledge these risks, we point out that 1) stores are not going away, and DSW is not oversaturated like some other retailers, and 2) the company's advantageous relationships garners it a significant level of product differentiation (over 60% of the assortment is exclusives or special makeups)."

For an analyst ratings summary and ratings history on DSW Inc. click here. For more ratings news on DSW Inc. click here.

Shares of DSW Inc. closed at $34.78 yesterday.

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