Needham & Company Reiterates a 'Buy' on Zumiez (ZUMZ); F4Q Guidance Better Than Expected
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Price: $18.64 -1.38%
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Zumiez, Inc. (NASDAQ: ZUMZ) price target raised from $26 to $31
Needham analyst says, "ZUMZ is one of the few growth stories in specialty retail with HSD% square footage growth, and deserves to trade at a premium
to the sector. At ~16x our increased FY12 EPS estimate of $1.42, (13x ex-cash), ZUMZ is trading above the sector average of ~13x but below its long term organic growth rate of 20% to 25% and historical forward P/E of Low30s. A broad and shallow merchandising strategy of unique branded product and high accessories penetration, ZUMZ should be able to maintain pricing power through FY11. Given the opportunity for EPS growth driven by margin improvements and continued sales momentum, we believe ZUMZ should trade at least in-line with the mid-point of a conservative long term growth rate of 20% to 25%, or $31 or 22x."
"We are increasing our F4Q and FY11 EPS estimates to $0.56 and $1.15, respectively, up from $0.54 and $1.10. We are adjusting our F2Q12, F3Q12, F4Q12 and FY12 EPS estimates to $0.10, $0.56, $0.69 and $1.42, respectively, from $0.11, $0.51, $0.66 and $1.35."
For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.
Shares of Zumiez, Inc. closed at $23.37 yesterday.
Needham analyst says, "ZUMZ is one of the few growth stories in specialty retail with HSD% square footage growth, and deserves to trade at a premium
to the sector. At ~16x our increased FY12 EPS estimate of $1.42, (13x ex-cash), ZUMZ is trading above the sector average of ~13x but below its long term organic growth rate of 20% to 25% and historical forward P/E of Low30s. A broad and shallow merchandising strategy of unique branded product and high accessories penetration, ZUMZ should be able to maintain pricing power through FY11. Given the opportunity for EPS growth driven by margin improvements and continued sales momentum, we believe ZUMZ should trade at least in-line with the mid-point of a conservative long term growth rate of 20% to 25%, or $31 or 22x."
"We are increasing our F4Q and FY11 EPS estimates to $0.56 and $1.15, respectively, up from $0.54 and $1.10. We are adjusting our F2Q12, F3Q12, F4Q12 and FY12 EPS estimates to $0.10, $0.56, $0.69 and $1.42, respectively, from $0.11, $0.51, $0.66 and $1.35."
For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.
Shares of Zumiez, Inc. closed at $23.37 yesterday.
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