Jefferies Cuts Price Target on Zumiez (ZUMZ) Ahead of Earnings, Can't Sustain Previous Growth Rate
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Price: $18.27 +4.58%
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is maintaining its Hold rating on shares of Zumiez, Inc. (NASDAQ: ZUMZ) while cutting its price target from $28 to $21.
The firm believes that Zumiez will post strong second quarter results that show margin expansion and continued topline momentum. To go inline with their forecast, the firm is estimating EPS of $0.04 with 10 bps expansion in gross margin. The company already announced that its same-store-sales for the quarter was 7.5 percent.
ZUMZ should continue to gain market share as its management team balances its long-term initiatives with its near-term goals. The company in the past has reported solid margin and same-store-sales gains which Jefferies does not believe they will be able to sustain at that level.
"While we believe the stock has become more interesting in light of the recent pullback, more difficult compares keep us on the sidelines for now. We will be looking for evidence that the business can be sustained before becoming more positive," reports an analyst at Jefferies.
Jefferies raised its 2012 EPS estimate from $1.06 to $1.08 and its EBITDA estimate from $78 million to $79 million.
For more ratings news on Zumiez, Inc. click here and for the rating history of Zumiez, Inc. click here.
Shares of Zumiez, Inc. closed at $19.28 yesterday.
The firm believes that Zumiez will post strong second quarter results that show margin expansion and continued topline momentum. To go inline with their forecast, the firm is estimating EPS of $0.04 with 10 bps expansion in gross margin. The company already announced that its same-store-sales for the quarter was 7.5 percent.
ZUMZ should continue to gain market share as its management team balances its long-term initiatives with its near-term goals. The company in the past has reported solid margin and same-store-sales gains which Jefferies does not believe they will be able to sustain at that level.
"While we believe the stock has become more interesting in light of the recent pullback, more difficult compares keep us on the sidelines for now. We will be looking for evidence that the business can be sustained before becoming more positive," reports an analyst at Jefferies.
Jefferies raised its 2012 EPS estimate from $1.06 to $1.08 and its EBITDA estimate from $78 million to $79 million.
For more ratings news on Zumiez, Inc. click here and for the rating history of Zumiez, Inc. click here.
Shares of Zumiez, Inc. closed at $19.28 yesterday.
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