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KeyBanc Raises Price Target on Oxford Industries (OXM), Strong Performance from Tommy Bahama, Lilly Pulitzer

March 30, 2011 4:05 PM EDT
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 maintained its Buy rating on shares of Oxford Industries Inc. (NYSE: OXM), while raising its price target from $30 to $34 based on higher-than-expected earnings.

The firm is really impressed with the results from Tommy Bahama and Lilly Pulitzer. It believes both of the aforementioned banners will drive top-line growth, while gross margin increases may offsets the cotton and labor headwinds. OXM has also made steps in the right direction to improve its performance at Ben Sherman.

KeyBanc also raised its 2011 EPS estimate from $1.90 to $2.04 and sees the company having the potential for a $3 mid-term EPS. The firm says at its peak, Tommy Bahama could drive an incremental $0.75-$1.00 of its earnings, while Lilly Pulitzer could bring in $0.45 and Ben Sherman could peak at $1.

Unlike many other company's the firm covers, OXM actually expects that its gross margin will rise in 2011, stating "its investments in owned retail are bearing fruit."


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