Wells Fargo Downgrades Gordmans Stores (GMAN) to Market Perform; Lowering Estimates

Wells Fargo downgraded Gordmans Stores (NASDAQ: GMAN) from Outperform to Market Perform. Valuation range lowered from $17-19 to $16-17.

Wells analyst says, "We believe GMAN offers a differentiated store concept that is early on in its growth cycle. GMAN has the potential to triple its store base, just in the Midwest, and plans to grow square footage 10% per year. New store economics are attractive, with a payback period of 1-2 yrs. However, we are concerned that the merchandising issues that started with Easter and continued into Q2, could lead to further downward estimate revisions and gross margin pressure...Our new '11E/'12E EPS are $1.20/$1.30, down from $1.32/$1.45."

For more ratings news on Gordmans Stores click here and for the rating history of Gordmans Stores click here.

Shares of Gordmans Stores closed at $22.01 yesterday.

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