Piper Jaffray Raises Price Target on Kirkland's (KIRK) to $25 Following 1Q Report

Piper Jaffray reiterated an Overweight rating on Kirkland's (NASDAQ: KIRK), and raised the price target to $25.00 (from $24.00), following the company's 1Q earnings report. KIRK reported EPS of $0.06 slightly below consensus' estimate of $0.09. Full-year guidance was maintained with EPS expected to be in a range of $0.98-$1.11.

Analyst Neely Tamminga commented, "We are reiterating our Overweight rating on KIRK in view of what we believe will be a path to operating margin expansion over time from the MSD% levels for last year and next year to +HSD%. Management has outlined a specific path to margin expansion rooted in measurements in increasing traffic, conversion, average unit retail pricing, and units sold per transaction. Aiding our confidence is our knowledge of KIRK's investments in omni-channel functionalities, human capital in marketing, and various other critical departments, as well as thoughtful real estate expansion plans. Our price target moves to $25."

For an analyst ratings summary and ratings history on Kirkland's click here. For more ratings news on Kirkland's click here.

Shares of Kirkland's closed at $13.02 yesterday.

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