Wedbush Downgrades Talbots (TLB) to Underperform; Expect Muted Q3 Guidance & Slow Turn in Tough Macro
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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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Wedbush downgraded Talbots (NYSE: TLB) from Outperform to Underperform, price target lowered from $4 to $2.50.
Wedbush analyst says, "On sluggish Q2 checks, slow early Q3 momentum, along with a tough macro, we are cutting our estimates, PT, and rating to UNDERPERFORM as we believe a turnaround may be difficult to achieve. Despite improved merchandise designs, increases in marketing efforts, and heightened promotional cadence, our checks suggest poor traffic and conversion trends as stores are plagued with heavy inventory (+13.8% at Q1-end) suggesting significant gross margin deterioration potential through H2. Although we commend the company’s efforts to broaden the customer base with the accelerated refreshment of ~70 locations TY, we believe major sales improvement may not be visible in the NT, particularly given the current macro environment and the conservative nature of TLB’s shoppers."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $2.67 yesterday.
Wedbush analyst says, "On sluggish Q2 checks, slow early Q3 momentum, along with a tough macro, we are cutting our estimates, PT, and rating to UNDERPERFORM as we believe a turnaround may be difficult to achieve. Despite improved merchandise designs, increases in marketing efforts, and heightened promotional cadence, our checks suggest poor traffic and conversion trends as stores are plagued with heavy inventory (+13.8% at Q1-end) suggesting significant gross margin deterioration potential through H2. Although we commend the company’s efforts to broaden the customer base with the accelerated refreshment of ~70 locations TY, we believe major sales improvement may not be visible in the NT, particularly given the current macro environment and the conservative nature of TLB’s shoppers."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $2.67 yesterday.
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