Nomura Securities Maintains a 'Neutral' on Talbots (TLB); Review of 2Q 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: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities maintains a 'Neutral' on Talbots (NYSE: TLB) price target of $3.00.
Nomura analyst, Paul Lejuez, said, "Trends in 2Q were very weak and 3Q so far is not much better. The market was focused on two company announcements: (1) it will be replacing its Chief Creative Officer, and (2) it has obtained liquidity through Li & Fung. Even with new creative direction, we believe it will be difficult to reverse brand issues TLB is facing. Second, while the Li & Fung agreement is helpful from a cash perspective, it also highlights the company’s liquidity issues. We are reducing our F11E to ($1.01) from ($0.91), based on lower margins than previously forecast. No change to our Neutral rating. The stock is not cheap, trading at ~7x our F12E EBITDA with limited visibility."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $2.96 yesterday.
Nomura analyst, Paul Lejuez, said, "Trends in 2Q were very weak and 3Q so far is not much better. The market was focused on two company announcements: (1) it will be replacing its Chief Creative Officer, and (2) it has obtained liquidity through Li & Fung. Even with new creative direction, we believe it will be difficult to reverse brand issues TLB is facing. Second, while the Li & Fung agreement is helpful from a cash perspective, it also highlights the company’s liquidity issues. We are reducing our F11E to ($1.01) from ($0.91), based on lower margins than previously forecast. No change to our Neutral rating. The stock is not cheap, trading at ~7x our F12E EBITDA with limited visibility."
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $2.96 yesterday.
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