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Brean Capital Starts G-III Apparel (GIII) at Hold

August 4, 2015 6:27 AM EDT
Get Alerts GIII Hot Sheet
Price: $29.01 +0.73%

Rating Summary:
    9 Buy, 8 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Brean Capital initiates coverage on G-III Apparel (NASDAQ: GIII) with a Hold rating, saying near-term upside is limited.

Analyst Liz Pierce commented, "We initiate coverage of G-III Apparel Group, Inc. (GIII) with a Hold rating and $75 fair value estimate. Through a series of acquisitions and license additions and extensions, GIII business model has become a diversified and leading licensor and brand owner in the apparel space with a dominant presence in outerwear, dresses, sportswear and accessories. The company also has a growing retail presence with company owned brands G.H. Bass, Vilebrequin and Wilsons Leather. Importantly, we believe there are multiple organic sales and earnings drivers as well as the possibility for more transformational acquisitions. Nonetheless, we believe the current valuation reflects most of the aforementioned factors. Furthermore, the stock is currently trading at ~23x our FY17 EPS estimate of $3.22, a premium to our estimated 3-year CAGR of ~17%, and on a relative basis, at a premium to its peer group multiple of 21x. Accordingly, we believe the stock is fairly valued and would look for a pullback before becoming more constructive in the name. Our fair value estimate is based on a multiple of ~23x our FY17 EPS of $3.22 and PEG ratio of ~1.4x."

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 $69.72 yesterday.



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