Wedbush Upgrades bebe stores, inc. (BEBE) to Outperform on Improving Sales, Leaner Inventories, and Looming Margin Recovery
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Price: $0.70 --0%
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush upgraded bebe stores, inc. (NASDAQ: BEBE) from Underperform to Outperform. PT increased from $5.50 to $8.
Wedbush analyst says, "With indications of strengthening topline momentum in April and checks of growing resonance with shoppers, we are raising our estimates and rating. While gross margin will likely remain pressured by higher input costs until we lap the initial rise in Q2:F11, we believe improving comp store sales alone (on top of several years of declines) should drive the stock up. Specifically, we note conversion rates rose +11% in Q3, the highest in over a year, and while store traffic decreased (3.0)%, we note it is the smallest decline in ~15 quarters. With leaner inventories in the horizon (guidance of +LSD to +MSD vs. +20% at Q3-end) along with the impending anniversary of higher product costs by Q2:F12, we believe BEBE is at an inflection point in both sales and operating margin restoration."
'We are raising our Q4 (Jun) EPS estimate to $0.03 from $0.00 which reflects
April’s positive sales momentum. We look for a comp of +5% vs. (3.4)% LY."
For more ratings news on bebe stores, inc. click here and for the rating history of bebe stores, inc. click here.
Shares of bebe stores, inc. closed at $6.60 yesterday.
Wedbush analyst says, "With indications of strengthening topline momentum in April and checks of growing resonance with shoppers, we are raising our estimates and rating. While gross margin will likely remain pressured by higher input costs until we lap the initial rise in Q2:F11, we believe improving comp store sales alone (on top of several years of declines) should drive the stock up. Specifically, we note conversion rates rose +11% in Q3, the highest in over a year, and while store traffic decreased (3.0)%, we note it is the smallest decline in ~15 quarters. With leaner inventories in the horizon (guidance of +LSD to +MSD vs. +20% at Q3-end) along with the impending anniversary of higher product costs by Q2:F12, we believe BEBE is at an inflection point in both sales and operating margin restoration."
'We are raising our Q4 (Jun) EPS estimate to $0.03 from $0.00 which reflects
April’s positive sales momentum. We look for a comp of +5% vs. (3.4)% LY."
For more ratings news on bebe stores, inc. click here and for the rating history of bebe stores, inc. click here.
Shares of bebe stores, inc. closed at $6.60 yesterday.
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