Piper Jaffray Raises Price Target on G-III Apparel Group (GIII) After Meeting with EVP of Sourcing

Piper Jaffray reiterated an Overweight rating on G-III Apparel Group (NASDAQ: GIII), and raised the price target to $58.00 (from $54.00), following a recent meeting with company executives. Piper came away from the meetings in China bullish on both margin & new category opportunities longer-term.

Analyst Erinn Murphy commented, "While shares have rebounded YTD, we remain positive on GIII as a small cap idea for 2016. We recently met with GIII's EVP of Sourcing Karl McErlean while in China. We came away bullish on the longer-term opportunities for both margin & new category (footwear, denim). For Q4 (report 3/22), given the tougher outerwear season tied to warm weather, we are published at $0.38 vs. the Street's $0.44 (guide: $0.38 to $0.53). We believe the Street is mostly focused on FY17 guidance and expect the numerous brand & category catalysts to support low- to mid-teens EPS growth. We remain comfortable with our $3.00 estimate (Street: $3.14). Earlier this year, the company reiterated its longterm goals for CK to be a $1B+brand, GH Bass as a $1B opportunity, Karl Lagerfeld at $500M and VBQ as $250M over time."

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 $54.67 yesterday.

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