Brean Murray Carret & Co. Raises Price Target on Rick’s Cabaret (RICK), Growth Through Acquisitions Looks Stable

Brean Murray Carret & Co. is maintaining its Buy rating on shares of Rick’s Cabaret (NASDAQ: RICK) and is raising its price target from $12 to $14 following strong Q2 results. Growth Through Acquisitions Looks Stable

The company released its Q2 earnings with total revenue of $22.8 million and EPS of $0.29. Revenue rose 4.3% Y/Y and EPS topped the firm's forecast by $0.03. Management indicated in its press conference that April sales were higher Y/Y and that if the current trends continue then 2011 may be the best year ever for them.

With RICK's most recent acquisitions beginning to unfold the growth looks healthy in the future. The company expects to maintain its plan to add one acquisition each quarter that generates $2-$5 million in revenue at a price of 3x its EBITDA.

The firm is raising its FY11 and FY12 EPS estimates from $0.85 and $1.00 to $0.88 and $1.02.

For more ratings news on Rick’s Cabaret click here and for the rating history of Rick’s Cabaret click here.

Shares of Rick’s Cabaret closed at $10.42 yesterday.

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