FBR Capital Downgrades True Religion Apparel (TRLG) to Market Perform; Share Reaction Prompts Move to Sidelines

February 28, 2011 7:17 AM EST
Get Alerts TRLG Hot Sheet
Price: $31.98 --0%

Rating Summary:
    3 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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FBR Capital downgraded True Religion Apparel (NASDAQ: TRLG) from Outperform to Market Perform. Raises PT from $22 to $25.

FBR analyst says, "With TRLG +19% (versus S&P +1%) the day following the 4Q print, we believe shares are more fairly valued and, thus, are lowering our rating...A decent 4Q (EPS of $0.63 came in ahead of consensus of $0.61),
owing to better-than-expected growth in international and consumer direct, drove upside to our estimates. On planned reductions in the off-price channel, and heavier investments in marketing/international, FY11 EPS guidance of $1.80 came in light of our below-consensus estimate of $1.94 (consensus of $2.02). Given the negative sentiment in the name and heavy short interest (20% short interest), a short squeeze was not a surprise; however, the magnitude was."

For more ratings news on True Religion Apparel click here and for the rating history of True Religion Apparel click here.

Shares of True Religion Apparel closed at $25.07 yesterday.

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