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UPDATE: Canaccord Genuity Upgrades DSW Inc. (DSW) to Buy

February 20, 2015 6:37 AM EST
Get Alerts DSW Hot Sheet
Price: $22.51 --0%

Rating Summary:
    6 Buy, 18 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - February 20, 2015 8:39 AM EST)

Canaccord Genuity upgraded DSW Inc. (NYSE: DSW) from Hold to Buy with a price target of $45.00 (from $33.00). Analyst Camilo Lyon sees comp re-acceleration in women's footwear, and raised Q4 comp/EPS estimate to 4%/28c (from 2%/25c.)

"We believe a multitude of factors are coming together to support a comp re-acceleration in DSW's largest and margin-accretive category, women's footwear. These factors include: 1) a stronger fashion assortment boosted by both fresh styles from key vendors like SHOO and an overall improved assortment driven by DSW's new buying team (the increase in key brands like Sorel, Timberland and Bearpaw have visibly helped), 2) increased opportunistic buys that could lead to merchandise margin gains, and 3) technology investments that should finally begin to drive more profitable comp growth," said Lyon.

"All in, we see 2015 as a year in which comp growth can re-accelerate followed by structural margin improvements that will begin to flow through in 2016, thus resulting in sustained mid-high teens EPS growth," added the analyst.

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

Shares of DSW Inc. closed at $35.81 yesterday.



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