Needham & Company Reiterates a 'Buy' on True Religion (TRLG); Sell-Off from EPS Miss & Guidance is Buying Opportunity

Needham & Company reiterates a 'Buy' on True Religion Apparel (NASDAQ: TRLG) price target of $39.00.

Analyst, Christine Chen, said, "With the sell-off, TRLG is now trading at ~11.8x our FY13 EPS estimate of $2.41 (~8.7x excluding ~$7 in cash), significantly below the sector average of ~15x & the low end of its conservative long term organic growth rate of about 15% to 18%. TRLG is well-positioned for continued growth in Int’l & U.S. retail, both far from reaching saturation with only 109 U.S and 16 international stores. Retail is driving sales growth, has higher margins, enables TRLG to better control pricing and is now 60% of sales vs. 52% LY. One of the top brand names in premium denim offering highly differentiated fashion denim with an aspirational lifestyle image TRLG is one of the few brands offering compelling merchandise to customers & getting Full Price for it. We believe fair market value of TRLG is at least 16x (the mid-point of its growth rate) our FY13 EPS estimate of $2.41 & are reiterating our rating."

"We are lowering our F1Q, F2Q, F3Q, F4Q, and FY12 EPS estimates to $0.36, $0.39, $0.52, $0.69, and $1.96 respectively, down from $0.41, $0.52, $0.63, $0.86, and $2.42....We are introducing F1Q, F2Q, F3Q, F4Q, and FY13 EPS estimates of $0.41, $0.51, $0.63, $0.86, and $2.41."

For an analyst ratings summary and ratings history on True Religion Apparel click here. For more ratings news on True Religion Apparel click here.

Shares of True Religion Apparel closed at $36.74 yesterday.

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