Needham & Company Reiterates a 'Buy' on bebe stores (BEBE); Jan. SSS Continue Strong Sales Trends - Outlook Likely Conservative

Needham & Company reiterates a 'Buy' on bebe stores, inc. (NASDAQ: BEBE) price target raised from $9 to $11.

Analyst Christine Chen, said, "At ~19x our CY13 EPS estimate of $0.46, (ex ~$3.24 in cash), BEBE is trading slightly above the sector average of ~15x. BEBE reached trough earnings of $0.01 and OM deterioration (0.9%) in CY09 down from peak of +22% in CY1999 and is on the way towards sales acceleration and margin expansion due to an improved product offering and better inventory control as evidenced by CY11 EPS of $0.14 and OMS of 3.4%. We are forecasting OMs of 8.0% in CY12 and 11.1% in CY13. Given that BEBE is a turnaround story with momentum, we think fair value is ~18x our CY13 EPS of $0.46, plus the ~$3.24 in cash per share or ~$11."

"We are adjusting our F4Q12, FY12, and CY12 EPS estimates to $0.10, $0.22 and $0.32, respectively, up from $0.09, $0.21 and $0.31."

For an analyst ratings summary and ratings history on bebe stores, inc. click here. For more ratings news on bebe stores, inc. click here.

Shares of bebe stores, inc. closed at $9.06 yesterday.

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