Wedbush Cuts Price Target on Sotheby's (BID), China Sales Inline with Expectations
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Price: $36.98 --0%
Rating Summary:
4 Buy, 2 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 21 | New: 19
Rating Summary:
4 Buy, 2 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 21 | New: 19
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Wedbush is reaffirming its Outperform rating on shares of Sotheby's (NYSE: BID) while cutting its price target from $57 to $48.
The firm reports that sales at Sotheby’s Asian Art week in Hong Kong are meeting expectations despite the so called slowing economy. Similar to the second quarter, higher priced art pieces, which require a down payment even to bid on the piece, have not been selling in the auction. Wedbush notes that it is very possible that they will sell on the private market.
For the fourth quarter, Wedbush is forecasting 6.6 percent revenue growth as total auction value is estimated to rise by 6.5 percent.
An analyst at Wedbush comments, "Given still positive momentum in the global art market, we believe shares of BID should trade relatively in line to the peer group average of other luxury good companies. However, we note significant multiple compression in this peer group of luxury good companies in recent weeks."
The firm is maintaining its 2011 and 2012 EPS estimates of $3.28 and $3.40. Revenue for the two years is forecasted to be $904 million and $957 million.
For more ratings news on Sotheby's click here and for the rating history of Sotheby's click here.
Shares of Sotheby's closed at $28.52 yesterday, with a 52 week range of $25.00-$55.67.
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The firm reports that sales at Sotheby’s Asian Art week in Hong Kong are meeting expectations despite the so called slowing economy. Similar to the second quarter, higher priced art pieces, which require a down payment even to bid on the piece, have not been selling in the auction. Wedbush notes that it is very possible that they will sell on the private market.
For the fourth quarter, Wedbush is forecasting 6.6 percent revenue growth as total auction value is estimated to rise by 6.5 percent.
An analyst at Wedbush comments, "Given still positive momentum in the global art market, we believe shares of BID should trade relatively in line to the peer group average of other luxury good companies. However, we note significant multiple compression in this peer group of luxury good companies in recent weeks."
The firm is maintaining its 2011 and 2012 EPS estimates of $3.28 and $3.40. Revenue for the two years is forecasted to be $904 million and $957 million.
For more ratings news on Sotheby's click here and for the rating history of Sotheby's click here.
Shares of Sotheby's closed at $28.52 yesterday, with a 52 week range of $25.00-$55.67.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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