Wedbush Raises Price Target on Pier 1 Imports (PIR) Due to 7% Comps and New Guidance

Wedbush is reaffirming its Outperform rating on shares of Pier 1 Imports (NYSE: PIR) while increasing its price target by $1 to $16.

With the company reporting a 7 percent increase in comps for the third quarter ahead of the consensus of 6.2 percent, along with comps over the Thanksgiving weekend being up 10 percent, the firm is now increasing its Q3 EPS estimate from $0.18 to $0.21.

Management raised its Q3 earnings guidance to $0.20-$0.21 per share and forecasts merchandise margins will account for approximately 60 percent of total sales.

An analyst at Wedbush comments, "Strong results are being driven by targeted marketing and a fresh and expanded merchandise assortment. In particular, we are impressed with the newness and breadth of the seasonal assortments, as well as attractive price points and improved marketing strategies."

Wedbush is increasing its FY12 and FY13 EPS estimates from $0.83 and $0.96 to $0.85 and $0.98. Revenue for FY12 and FY13 is forecasted to be $1.52 billion and $1.62 billion.

For an analyst ratings summary and ratings history on Pier 1 Imports click here. For more ratings news on Pier 1 Imports click here.

Shares of Pier 1 Imports closed at $13.24 yesterday.

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