Piper Jaffray Downgrades Bare Escentuals (BARE) to Neutral; Removes From Alpha List
More News related to BARE
- Stifel Nicolaus Starts Coverage on Several Personal/Household Products Stocks (NUS, AVP, ACV, BARE, EL)
- Unusual 11 Mid-Day Movers 4/30: ENWV, BARE, MGM, GMCR Higher; SQNM, EROC, QTM, LOJN Lower
- Morning Movers 4/30: MGM, ENWV, BARE, SKX, OI, CLW Higher; SQNM, LOJN, SCSS, BBW, ISYS, RYL Lower
- After-Hours Movers 4/29: IMNY, GMCR, SKX, FSLR, HGSI, BARE Higher; SQNM, ISYS, JDSU, CAVM, NTRI, AXTI Lower
- Bare Escentuals (BARE) Tops Q1 View By 4c
Piper Jaffray downgrades Bare Escentuals (NASDAQ: BARE) from Buy to Neutral and lowers their price target from $36 to $16. The firm also removes BARE from the Piper Jaffray Alpha List.
The firm also updated their EPS estimates. Piper Jaffray lowered it FY08E EPS from $1.20 to $1.15, and reduced its FY09E EPS from $1.54 to $1.32.
The downgrade comes on the heels of management's disappointing sales outlook for FY08. While the company reported FQ2 EPS of $0.26, which was above Piper’s $0.24 EPS estimate, BARE's revenues were lower than expected largely driven by the 22% decline in the infomercial segment. Also, management lowered its revenue outlook for FY08 from a range of 20%-25% to a range of 15%-20%. Therefore, Piper Jaffray is now projecting 30% declines in this segment for the balance of FY08.
Overall, the firm said, "While we acknowledge that from a valuation to growth perspective, BARE appears relatively inexpensive, we believe shares of BARE lack a meaningful catalyst. We are sticking to the sidelines until we can see the following signs: 1) stabilization in the infomercial channel; 2) favorable customer response to the new kit initiative; and 3) signs of easing macro pressures such as traffic improvements, average ticket spending etc."
Bare Escentuals is a San Francisco-based prestige beauty company that focuses in the design, production, manufacturing & distribution of mineral-based cosmetics.
Related Categories
DowngradesStocks Mentioned
-0.66Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
