Standpoint Research Downgrades True Religion Apparel (TRLG) to Hold
Get Alerts TRLG Hot Sheet
Price: $31.98 --0%
Rating Summary:
1 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 11
Rating Summary:
1 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 11
Join SI Premium – FREE
Standpoint Research downgraded True Religion Apparel (NASDAQ: TRLG) from Buy to Hold.
The firm commented, "This is a tough call to make. TRLG is up 14% today on its Q1 earnings report from Thursday after-the-close and has already hit the 2012-2013 price target we set in November; see line 26 in the table below. TRLG is up 52% since our November 22, 2010 recommendation and beat the S&P-500 by more than 3800 bps. As I wrote in our eleven-page report from Q4 (attached), this company will double its store count and share price by 2015. We have in less than six months gotten half of the gain I was looking for over the next 3-5 years. The shares still look attractive here at 16X trailing twelve months earnings, 14X estimates for next year and a PEG ratio < 1. That being said, this stock crossed $30 in 2008, 2009 and 2010, only to be followed each time shortly thereafter with a 30% correction/decline. We are overweight consumer discretionary and want to take this opportunity to reduce that weight. This recommendation was originally intended to be a core long-term holding of ours, but given the 50% run, we can no longer leave our highest rating attached to this name. We will move to the sidelines and hope to get a chance to reinstate this name if it corrects to the mid-$20s."
For more ratings news on True Religion Apparel click here and for the rating history of True Religion Apparel click here.
Shares of True Religion Apparel closed at $27.79 yesterday.
The firm commented, "This is a tough call to make. TRLG is up 14% today on its Q1 earnings report from Thursday after-the-close and has already hit the 2012-2013 price target we set in November; see line 26 in the table below. TRLG is up 52% since our November 22, 2010 recommendation and beat the S&P-500 by more than 3800 bps. As I wrote in our eleven-page report from Q4 (attached), this company will double its store count and share price by 2015. We have in less than six months gotten half of the gain I was looking for over the next 3-5 years. The shares still look attractive here at 16X trailing twelve months earnings, 14X estimates for next year and a PEG ratio < 1. That being said, this stock crossed $30 in 2008, 2009 and 2010, only to be followed each time shortly thereafter with a 30% correction/decline. We are overweight consumer discretionary and want to take this opportunity to reduce that weight. This recommendation was originally intended to be a core long-term holding of ours, but given the 50% run, we can no longer leave our highest rating attached to this name. We will move to the sidelines and hope to get a chance to reinstate this name if it corrects to the mid-$20s."
For more ratings news on True Religion Apparel click here and for the rating history of True Religion Apparel click here.
Shares of True Religion Apparel closed at $27.79 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: RH, Estee Lauder rise; Tesla falls
- Monness, Crespi, Hardt Downgrades Palantir Technologies Inc. (PLTR) to Sell on 'egregiously rich valuation... darkest days of this economic downturn are ahead of us'
- HSBC Upgrades Haidilao International Holding Ltd. (6862:HK) (HDALF) to Hold on 'increase in our FCF assumptions'
Create E-mail Alert Related Categories
DowngradesRelated Entities
Standpoint Research, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!