UPDATE: Stifel Downgrades G-III Apparel (GIII) to Sell

August 31, 2016 6:39 AM EDT
Get Alerts GIII Hot Sheet
Price: $26.98 --0%

Rating Summary:
    10 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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(Updated - August 31, 2016 9:24 AM EDT)

Stifel downgraded G-III Apparel (NASDAQ: GIII) from Hold to Sell with a price target of $28. Analyst Jim Duffy said valuation doesn’t compensate for risks, despite a sell-off in shares.

"Despite the sell-off in shares, at the current valuation, we don’t believe shareholders are being adequately compensated for risks including among others: 1) concentration with structurally challenged distribution channels, 2) growing complexity and execution risk (including aggressive assumptions the DKI acquisition), and 3) higher than appreciated pro-forma leverage (inclusive of capitalized lease obligations, 3.8X). Our 12 mos. target price of represents a 7.3X TEV multiple on 2018 pro-forma EBITDA. Given the leverage and dependence on licensed brand rights for earnings power, we view this multiple as appropriate," said Duffy.

For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.

Shares of G-III Apparel closed at $33.14 yesterday.

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