Janney Montgomery Scott Starts New York & Co (NWY) at Buy, Not A "Value Trap"
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Price: $3.50 --0%
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Janney Montgomery Scott initiates coverage on shares of New York & Co (NYSE: NWY) with a Buy rating and $7 price target.
The firm notes that it recommends the stock to small cap value-oriented investors seeking exposure to a business and product turnaround that we expect will lead to a period of sustainable comp and margin expansion.
The Buy rating is based on the belief that the company's product is improving and driving the turn to sustainable positive comps; the company is entering a period of sustained margin expansion; inventory discipline remains strong; and new leadership is driving positive changes.
While the next couple of years will be mostly restructuring and turning the company back into a more profitable and sustainable company, the firm believes that its earnings could possibly reach $1 in the mid-future.
Janney is releasing its FY11 EPS and revenue estimates at $0.06 and $1.01 billion and its FY12 estimates at $0.28 and $1.02 billion.
An analyst at Janney comments, "While oftentimes turnaround stories can be potential “value traps,” we believe NWY is different, as we are already seeing the positive impact of improved product at the store level, and slightly positive comps suggest that the merchandising strategies are beginning to resonate with its target customer."
For more ratings news on New York & Co click here and for the rating history of New York & Co click here.
Shares of New York & Co closed at $4.96 yesterday.
The firm notes that it recommends the stock to small cap value-oriented investors seeking exposure to a business and product turnaround that we expect will lead to a period of sustainable comp and margin expansion.
The Buy rating is based on the belief that the company's product is improving and driving the turn to sustainable positive comps; the company is entering a period of sustained margin expansion; inventory discipline remains strong; and new leadership is driving positive changes.
While the next couple of years will be mostly restructuring and turning the company back into a more profitable and sustainable company, the firm believes that its earnings could possibly reach $1 in the mid-future.
Janney is releasing its FY11 EPS and revenue estimates at $0.06 and $1.01 billion and its FY12 estimates at $0.28 and $1.02 billion.
An analyst at Janney comments, "While oftentimes turnaround stories can be potential “value traps,” we believe NWY is different, as we are already seeing the positive impact of improved product at the store level, and slightly positive comps suggest that the merchandising strategies are beginning to resonate with its target customer."
For more ratings news on New York & Co click here and for the rating history of New York & Co click here.
Shares of New York & Co closed at $4.96 yesterday.
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