KeyBanc Cuts Price Target on Oxford Industries (OXM), Sees $3+ in Earnings Power in Medium-Term

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OXM Hot Sheet

Rating Summary:
2 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38

KeyBanc is reaffirming its Buy rating on shares of Oxford Industries (NYSE: OXM), but is lowering its price target from $45 to $42.

The company reported strong second quarter earnings with Tommy Bahama experiencing a 20 percent increase in operating income and Lilly posting an operating income of $5.6 million, which represent 30 percent on the company's total operating income.

The firm reports that Gross margin rose 125 bps year-over-year as a result of Lilly and greater contribution from owned retail.

An analyst at KeyBanc comments, "Tommy and Lilly should be supportive of a low-teens square footage rate over the medium to long term, which should help continue to buoy gross margin."

KeyBanc is lowering its third quarter EPS estimate from $0.16 to $0.12 and is maintaining its 2011 and 2012 EPS estimates of $2.25 and $2.77. The company's full-year 2011 EPS guidance is $2.20-$2.30.

For more ratings news on Oxford Industries click here and for the rating history of Oxford Industries click here.

Shares of Oxford Industries closed at $35.82 yesterday, with a 52 week range of $19.36-$39.89.

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