Stifel Downgrades Zumiez, Inc. (ZUMZ) to Hold

Stifel downgraded Zumiez, Inc. (Nasdaq: ZUMZ) from Buy to Hold and removed its $18 price target.

Analyst Richard Jaffe commented:

• We believe that Zumiez is a well-run business with a corporate culture that is engaging for the consumer and effective in generating earnings growth. However, given the recent volatility in the business and little visibility for improvement in the near term, at the current stock price, we believe much of the good news is in the stock, therefore the reward potential is limited and risk, given the fashion content, remains significant.
• The stock is currently trading at 13x our 2016 EPS estimate of $1.45 (above our previous target price of $18). This is at a discount to the two-year average of the out year consensus multiple of 15.8x, which we view as appropriate given the near term uncertainty of improved performance. Our outlook remains favorable regarding the future of the organization, but we currently find limited upside to the share price.

For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.

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