UBS Adjusts Estimates and Price Target on Talbots (TLB); Q1 Good, But N-T Catalyst Gone with Sycamore Offer
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Price: $2.76 --0%
Rating Summary:
2 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
2 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Trade TLB Now!
UBS maintains a 'Neutral' on Talbots (NYSE: TLB) price target lowered from $3.00 to $1.40.
Analyst, Roxanne Meyer, said, "Q1 EPS of $0.09 was better than our $(0.01) est with comps -3.8%, helped by upscale outlet comps +10% and reflects a 1.6 pt pick-up in the last 2 wks of April. Gross margin +80 bps (vs our flat estimate), SG&A -50 bps (vs our +40 bps estimate). While we are encouraged by betterthan- expected results, the YOY EPS increase of only $0.01 came despite benefits of cost-cutting, 90 store closings and leaner inventory. Given TLB’s best quarterly performance has historically been 1H weighted (if not in 1Q), we continue to expect an operating loss TY, though improved vs. 2011."
UBS raises FY12 loss from (0.59) to (0.55), but cuts FY13 from (0.24) to (0.27). Meyer implements a price target cut, citing shares of TLB are no longer tied to the potential $3.05/share Sycamore Partners take-out offer.
For an analyst ratings summary and ratings history on Talbots click here. For more ratings news on Talbots click here.
Shares of Talbots closed at $1.36 yesterday, with a 52 week range of $1.28-$4.80.
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Analyst, Roxanne Meyer, said, "Q1 EPS of $0.09 was better than our $(0.01) est with comps -3.8%, helped by upscale outlet comps +10% and reflects a 1.6 pt pick-up in the last 2 wks of April. Gross margin +80 bps (vs our flat estimate), SG&A -50 bps (vs our +40 bps estimate). While we are encouraged by betterthan- expected results, the YOY EPS increase of only $0.01 came despite benefits of cost-cutting, 90 store closings and leaner inventory. Given TLB’s best quarterly performance has historically been 1H weighted (if not in 1Q), we continue to expect an operating loss TY, though improved vs. 2011."
UBS raises FY12 loss from (0.59) to (0.55), but cuts FY13 from (0.24) to (0.27). Meyer implements a price target cut, citing shares of TLB are no longer tied to the potential $3.05/share Sycamore Partners take-out offer.
For an analyst ratings summary and ratings history on Talbots click here. For more ratings news on Talbots click here.
Shares of Talbots closed at $1.36 yesterday, with a 52 week range of $1.28-$4.80.
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