Nomura Securities Cuts Estimates on Wet Seal, Inc. (WTSLA); Can't Scrap an Identity Crisis
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Price: $2.95 -2.64%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Wet Seal, Inc. (NASDAQ: WTSLA) price target of $2.00.
Analyst, Paul Lejuez, said, "WTSLA is scrapping all previous rebranding efforts and will now focus all efforts on turning the business back into a fast-fashion retailer. Meanwhile, business trends are expected to deteriorate further as the new plan of attack materializes. Mgmt guided 3Q comps down 14%-18% (after down 11% in 2Q), and 3Q loss/share of $0.13-$0.16 (vs cons $0.01 loss). We are lowering our F12E from ($0.04) to ($0.23) and our F13E from ($0.09) to ($0.13). We model negative FCF in both F12E/F13E. Our $2 TP gives the company credit for its cash on balance sheet but little else. We do not share mgmt’s confidence that the business will turn by 4Q. The competitive landscape remains challenging and we believe Wet Seal is suffering from an identity crisis that will be difficult to overcome."
For an analyst ratings summary and ratings history on Wet Seal, Inc. click here. For more ratings news on Wet Seal, Inc. click here.
Shares of Wet Seal, Inc. closed at $3.06 yesterday.
Analyst, Paul Lejuez, said, "WTSLA is scrapping all previous rebranding efforts and will now focus all efforts on turning the business back into a fast-fashion retailer. Meanwhile, business trends are expected to deteriorate further as the new plan of attack materializes. Mgmt guided 3Q comps down 14%-18% (after down 11% in 2Q), and 3Q loss/share of $0.13-$0.16 (vs cons $0.01 loss). We are lowering our F12E from ($0.04) to ($0.23) and our F13E from ($0.09) to ($0.13). We model negative FCF in both F12E/F13E. Our $2 TP gives the company credit for its cash on balance sheet but little else. We do not share mgmt’s confidence that the business will turn by 4Q. The competitive landscape remains challenging and we believe Wet Seal is suffering from an identity crisis that will be difficult to overcome."
For an analyst ratings summary and ratings history on Wet Seal, Inc. click here. For more ratings news on Wet Seal, Inc. click here.
Shares of Wet Seal, Inc. closed at $3.06 yesterday.
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