Brean Murray Carret Raises Price Target on G-III Apparel (GIII), Sees Brighter Future for FY13
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Price: $33.79 +1.84%
Rating Summary:
10 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Brean Murray Carret & Co. is reaffirming its Buy rating on shares of G-III Apparel (NASDAQ: GIII) while increasing its price target from $28 to $31.
The company reported solid third quarter results as both earnings and revenues topped expectations. EPS of $2.16 beat the Street's consensus by $0.02 and the 13.3 percent increase in total sales to $510 million was $28.3 million above the firm's projection. The firm notes the upside for the quarter was largely driven by Calvin Klein and Jessica Simpson brand sales.
Management cut its FY12 earnings guidance range from $3.05-$3.15 to $2.50-$2.60 as they anticipate substantial margin pressure during the fourth quarter.
Looking ahead, the firm forecasts the worst is over for GIII and believes management has set up strong growth drivers for FY13. Some of the new growth drivers include; better sourcing and pricing, door expansion, new licensed products, and the expansion of existing licensing agreements.
An analyst at Brean Murray Carret comments, "We understand GIII will have to prove its credibility as weak results have saddened investors sentiment in the name, but we believe management is prepared to take the necessary actions to prove its worth."
Brean Murray Carret has increased both its FY12 and FY13 EPS estimates from $2.51 and $2.81 to $2.52 and $3.10. The Street is estimating EPS of $2.80 and $3.23 for FY12 and FY13.
For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.
Shares of G-III Apparel closed at $20.36 yesterday.
The company reported solid third quarter results as both earnings and revenues topped expectations. EPS of $2.16 beat the Street's consensus by $0.02 and the 13.3 percent increase in total sales to $510 million was $28.3 million above the firm's projection. The firm notes the upside for the quarter was largely driven by Calvin Klein and Jessica Simpson brand sales.
Management cut its FY12 earnings guidance range from $3.05-$3.15 to $2.50-$2.60 as they anticipate substantial margin pressure during the fourth quarter.
Looking ahead, the firm forecasts the worst is over for GIII and believes management has set up strong growth drivers for FY13. Some of the new growth drivers include; better sourcing and pricing, door expansion, new licensed products, and the expansion of existing licensing agreements.
An analyst at Brean Murray Carret comments, "We understand GIII will have to prove its credibility as weak results have saddened investors sentiment in the name, but we believe management is prepared to take the necessary actions to prove its worth."
Brean Murray Carret has increased both its FY12 and FY13 EPS estimates from $2.51 and $2.81 to $2.52 and $3.10. The Street is estimating EPS of $2.80 and $3.23 for FY12 and FY13.
For an analyst ratings summary and ratings history on G-III Apparel click here. For more ratings news on G-III Apparel click here.
Shares of G-III Apparel closed at $20.36 yesterday.
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