Needham & Company Reiterates a 'Hold' on Hot Topic (HOTT); F3Q In-line - Torrid Store Openings Increased for FY12
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Price: $14.00 --0%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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Needham & Company reiterates a 'Hold' on Hot Topic (NASDAQ: HOTT).
Needham analyst says, "At ~28x our FY12 EPS estimate of $0.24 (or 24x excluding $1.08 in cash), HOTT is trading at a significant premium to the sector average of ~13x. We are encouraged by improvements in sales trends and are excited for the rollout of Torrid stores in FY12, which we have always believed is the growth driver for HOTT. For a unique retail concept with the opportunity to improve OMs materially from trough levels of -0.1% in FY10 vs. peak of 13.4%, resulting in ~15% to 18% organic growth, we think HOTT is fairly valued at this time, but would become more constructive on a pull back in valuation."
"Our F4Q & FY11 EPS estimates of $0.17 & $0.16 remain unchanged...Our estimates remain unchanged for F1Q, F2Q, F3Q, F4Q, and FY12 EPS of $0.01, ($0.07), $0.09, $0.21, and $0.24, respectively."
For an analyst ratings summary and ratings history on Hot Topic click here. For more ratings news on Hot Topic click here.
Shares of Hot Topic closed at $6.52 yesterday.
Needham analyst says, "At ~28x our FY12 EPS estimate of $0.24 (or 24x excluding $1.08 in cash), HOTT is trading at a significant premium to the sector average of ~13x. We are encouraged by improvements in sales trends and are excited for the rollout of Torrid stores in FY12, which we have always believed is the growth driver for HOTT. For a unique retail concept with the opportunity to improve OMs materially from trough levels of -0.1% in FY10 vs. peak of 13.4%, resulting in ~15% to 18% organic growth, we think HOTT is fairly valued at this time, but would become more constructive on a pull back in valuation."
"Our F4Q & FY11 EPS estimates of $0.17 & $0.16 remain unchanged...Our estimates remain unchanged for F1Q, F2Q, F3Q, F4Q, and FY12 EPS of $0.01, ($0.07), $0.09, $0.21, and $0.24, respectively."
For an analyst ratings summary and ratings history on Hot Topic click here. For more ratings news on Hot Topic click here.
Shares of Hot Topic closed at $6.52 yesterday.
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