Needham & Company Maintains a 'Buy' on Perry Ellis (PERY); Margin Pressures F3Q EPS. Sourcing Costs Should Decline in FY12
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Price: $27.50 --0%
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Needham & Company maintains a 'Buy' on Perry Ellis (NASDAQ: PERY) price target slashes from $34 to $18.
Needham analyst says, "We believe that Mgmt changes at Perry Ellis & Rafaella brands can positively impact product & merchandising in FY12, with adjustments beginning in Spring, with the full impact by Fall 2012. Sourcing costs are expected to decline in FY12, providing opportunities for margin expansion, particularly in F2H. Despite near term product issues, PERY’s diverse brand portfolio provides long term growth opportunities fueled by Women’s (Laundry, C&C, Rafaella), Perry Ellis, Golf, Hispanic, Swim, International, Retail, & Licensing. At ~6x our decreased FY12 EPS estimate of $2.16, PERY is trading significantly below the sector average of ~13x. We think PERY should trade at least in-line with the low-end of a conservative long term growth rate of 8% to 10% as we expect to see sales and EBITDA improve in 2012."
For an analyst ratings summary and ratings history on Perry Ellis click here. For more ratings news on Perry Ellis click here.
Shares of Perry Ellis closed at $13.70 yesterday.
Needham analyst says, "We believe that Mgmt changes at Perry Ellis & Rafaella brands can positively impact product & merchandising in FY12, with adjustments beginning in Spring, with the full impact by Fall 2012. Sourcing costs are expected to decline in FY12, providing opportunities for margin expansion, particularly in F2H. Despite near term product issues, PERY’s diverse brand portfolio provides long term growth opportunities fueled by Women’s (Laundry, C&C, Rafaella), Perry Ellis, Golf, Hispanic, Swim, International, Retail, & Licensing. At ~6x our decreased FY12 EPS estimate of $2.16, PERY is trading significantly below the sector average of ~13x. We think PERY should trade at least in-line with the low-end of a conservative long term growth rate of 8% to 10% as we expect to see sales and EBITDA improve in 2012."
For an analyst ratings summary and ratings history on Perry Ellis click here. For more ratings news on Perry Ellis click here.
Shares of Perry Ellis closed at $13.70 yesterday.
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