Janney Montgomery Scott on Talbots (TLB): Ongoing Cash Concerns Keep Us At Sell; Await Top-line Turn
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Price: $2.76 --0%
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Janney Montgomery Scott downgraded Talbots (NYSE: TLB) to Sell. PT maintained at $3.
JMS analyst says, "We downgraded shares to SELL on May 20th based on concerns over: 1) weakness across the missy sector with particular underperformance in late April, 2) shifting investor appetite for retailers generally, and turnaround names, in particular, 3) concern over a challenging promotional environment, and 4) heavy clearance inventory. We are further concerned that ongoing top-line weakness will likely result in earnings pressure and the need to draw down on the line of credit. We believe substantially all of the company's assets, including the accounts receivable line, headquarters, and distribution center, are already securing the company's $200 million asset-based line of credit with GE Capital (NYSE: GE) and we believe potential attempts to monetize these assets would likely prove costly through the need for additional borrowings."
"We are lowering our FY11 estimate to ($0.29) from ($0.04) (versus the Street at $0.13) and our FY12 estimate goes to $0.04 from $0.17 (versus the Street at $0.38)."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $4.42 yesterday.
JMS analyst says, "We downgraded shares to SELL on May 20th based on concerns over: 1) weakness across the missy sector with particular underperformance in late April, 2) shifting investor appetite for retailers generally, and turnaround names, in particular, 3) concern over a challenging promotional environment, and 4) heavy clearance inventory. We are further concerned that ongoing top-line weakness will likely result in earnings pressure and the need to draw down on the line of credit. We believe substantially all of the company's assets, including the accounts receivable line, headquarters, and distribution center, are already securing the company's $200 million asset-based line of credit with GE Capital (NYSE: GE) and we believe potential attempts to monetize these assets would likely prove costly through the need for additional borrowings."
"We are lowering our FY11 estimate to ($0.29) from ($0.04) (versus the Street at $0.13) and our FY12 estimate goes to $0.04 from $0.17 (versus the Street at $0.38)."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $4.42 yesterday.
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