UBS Cuts Price Target on HSN, Inc. (HSNI) to $50; Reiterates Buy
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UBS maintained a Buy rating on HSN, Inc. (NASDAQ: HSNI), and cut the price target to $50.00 (from $60.00), following the company's 3Q earnings report. Q3 top & bottom line results were impacted by weakness in fitness, infomercial, electronics and lower shipping revs (increased promotions) at HSN as well as continued weakness in outdoor at Cornerstone.
Analyst Eric Sheridan commented, "For the 3rd quarter in a row, HSNi reported a quarter with disappointing revs (driven by product, competition & macro) & continued gross profit margin pressure (which seems likely to sustain as a headwind due to mix & competition). Looking forward, we are heartened by the hiring of a Chief Merchandizing Officer, a mgmt team focused on striking the right balance of revs growth & margins in 2017 and the potential for increased shareholder returns (supportive against a 52 week low stock price). Over the long-term (2017-2020), we still see the home shopping (with an increased element of digital + mobile) as a category that can produce mid-single digit revs growth and margin expansion against a stock approaching historically low forward multiples (& approaching our downside case of $28/share)."
Shares of HSN, Inc. closed at $31.25 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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