Nomura Securities Maintains a 'Neutral' on Talbots (TLB); Review of 1Q Results
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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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Nomura Securities maintains a 'Neutral' on Talbots (NYSE: TLB), PT $3.
Nomura analyst, Paul Lejuez, said, "The company had very little good news to report in 1Q, other than optimism about 2H product. Three years into TLB’s brand transformation, the concept is struggling to find its customer base. While refreshes improve the look of the stores, unless the new prototype can drive traffic, it will have little positive effect. We are reducing our F11E from ($0.05) to ($0.91) based on lower sales and margins than previously forecast."
"Our $3 TP represents ~7x our F12E EBITDA (assuming current net debt levels); if we assume TLB sells its credit card business, based on the new net debt, the implied F12 EV/EBITDA would be ~5x, more appropriate for a struggling retailer burning cash. While the stock could get an initial bounce if TLB were to announce a sale of its receivables, we believe once the market digested the event the stock would trade back down."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $2.63 yesterday.
Nomura analyst, Paul Lejuez, said, "The company had very little good news to report in 1Q, other than optimism about 2H product. Three years into TLB’s brand transformation, the concept is struggling to find its customer base. While refreshes improve the look of the stores, unless the new prototype can drive traffic, it will have little positive effect. We are reducing our F11E from ($0.05) to ($0.91) based on lower sales and margins than previously forecast."
"Our $3 TP represents ~7x our F12E EBITDA (assuming current net debt levels); if we assume TLB sells its credit card business, based on the new net debt, the implied F12 EV/EBITDA would be ~5x, more appropriate for a struggling retailer burning cash. While the stock could get an initial bounce if TLB were to announce a sale of its receivables, we believe once the market digested the event the stock would trade back down."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $2.63 yesterday.
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