Janney Montgomery Scott Maintains a 'Neutral' on Zuoan Fashion (ZA); Lowering Numbers on Reduced Outlook

Janney Montgomery Scott maintains a 'Neutral' on Zuoan Fashion Limited American (NYSE: ZA), lowers price target from $7.00 to $4.50.

JMS analyst said, "On August 11, ZA reported 2Q11 earnings per ADS of $0.25, just above the Street and our estimate of $0.24. 2Q11 results were driven by sales volume growth and total store growth from the distributor level...With net income expectations of roughly RMB80.1- RMB84.3 million and EPADS of approximately $0.44-$0.48, ZA offered 3Q11 guidance above consensus projections; the Street is at $0.41. However, the company guided FY11 below the Street to the range of $1.32-$1.36 EPADS; the Street is currently at $1.37. We are lowering our FY11 EPADS to $1.36 from $1.42 and FY12 remains the same at $1.62. We are lowering our fair value to $4.50 from $7.00 given the lack of appetite for Chinese retailers in the current U.S. marketplace."

For more ratings news on Zuoan Fashion Limited American click here and for the rating history of Zuoan Fashion Limited American click here.

Shares of Zuoan Fashion Limited American closed at $3.61 yesterday.

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