Standpoint Research Upgrades Perry Ellis (PERY) to Buy; Recent Decline Presents Opportunity

Standpoint Research upgraded Perry Ellis (NASDAQ: PERY) from Hold to Buy with a price target of $21.00.

Analyst, Ronnie Moas, said, "PERY is an intricate and complicated business with 30 brands. Q3 product problems, mainly design issues, at Perry Ellis and Rafaella triggered the sell-off. These issues will be corrected in 2012 but not in time for Q4. PERY is now trading at just 0.2X sales, 7X our conservative estimates for 2011 and 6X estimates for 2012. The problems in Q3 will spill over into Q4 but on a lesser scale."

"We are stepping in at this time even though Wall Street confidence has been shaken and not yet restored. There remains $23 mln in the share repurchase authorization and that is significant / more than 10% of the market capitalization. Debt is no problem and is stretched out to 2019."

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 $13.02 yesterday.

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