Nomura Securities on Retailing Hardlines: Lowering Estimates and Downgrading BBBY to Neutral
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Price: $4.35 -2.03%
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities on Retailing Hardlines
Nomura analyst, Aram Rubinson, said, "Pre-emptive EPS cuts and downgrade Bed Bath & Beyond (Nasdaq: BBBY) to Neutral. Our core views are fundamental, but the bad news is getting harder to ignore. We are proactively trimming estimates on six retailers and lowering our rating on BBBY to Neutral. BBBY is among the best retailers in the world and its successes remain under-appreciated in our view. However, comps and EBIT margin gains are likely to moderate from here and we see no reason to change estimates on the dollar stores or the auto parts sector as both sectors are likely to perform well in a weaker economy."
Other Estimate and Price Target Changes Include:
BBBY: 2011E EPS to $3.80 from $3.85, 2012E to $4.25 from $4.58, 2013E to $4.95 from $5.55; PT to $63 from $73.
PetSmart (Nasdaq: PETM): 2011E EPS to $2.50 from $2.58, 2012E to $2.90 from $3.12, 2013E at $3.26; PT to $55 from $56.
Tractor Supply (Nasdaq: TSCO): 2011E EPS to $2.87 from $2.90, 2012E to $3.40 from $3.50, 2013E to $4.07 from $4.20; PT to $71 from $73.
Lowe's (NYSE: LOW): 2011E EPS to $1.55 from $1.60, 2012E to $1.50 from $1.82, 2013E to $1.55, PT to $19 from $25.
Home Depot (NYSE: HD): 2011E EPS to $2.34 from $2.42, 2012E to $2.65 from $2.95, 2013E to $3.15 from $3.55; PT to $35 from $40.
Staples (Nasdaq: SPLS): 2011E EPS to $1.28 from $1.32, 2012E to $1.25 from $1.37; PT to $13 from $14.
Nomura analyst, Aram Rubinson, said, "Pre-emptive EPS cuts and downgrade Bed Bath & Beyond (Nasdaq: BBBY) to Neutral. Our core views are fundamental, but the bad news is getting harder to ignore. We are proactively trimming estimates on six retailers and lowering our rating on BBBY to Neutral. BBBY is among the best retailers in the world and its successes remain under-appreciated in our view. However, comps and EBIT margin gains are likely to moderate from here and we see no reason to change estimates on the dollar stores or the auto parts sector as both sectors are likely to perform well in a weaker economy."
Other Estimate and Price Target Changes Include:
BBBY: 2011E EPS to $3.80 from $3.85, 2012E to $4.25 from $4.58, 2013E to $4.95 from $5.55; PT to $63 from $73.
PetSmart (Nasdaq: PETM): 2011E EPS to $2.50 from $2.58, 2012E to $2.90 from $3.12, 2013E at $3.26; PT to $55 from $56.
Tractor Supply (Nasdaq: TSCO): 2011E EPS to $2.87 from $2.90, 2012E to $3.40 from $3.50, 2013E to $4.07 from $4.20; PT to $71 from $73.
Lowe's (NYSE: LOW): 2011E EPS to $1.55 from $1.60, 2012E to $1.50 from $1.82, 2013E to $1.55, PT to $19 from $25.
Home Depot (NYSE: HD): 2011E EPS to $2.34 from $2.42, 2012E to $2.65 from $2.95, 2013E to $3.15 from $3.55; PT to $35 from $40.
Staples (Nasdaq: SPLS): 2011E EPS to $1.28 from $1.32, 2012E to $1.25 from $1.37; PT to $13 from $14.
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