BMO Capital Downgrades DAVIDsTEA (DTEA) to Market Perform

BMO Capital downgraded DAVIDsTEA (NASDAQ: DTEA) from Outperform to Market Perform with a price target of $9.00 (from $16.00).

Analyst Kelly Bania commented, "We are downgrading DTEA shares to Market Perform and lowering our price target to $9. Following weaker-than-expected F3Q17 results & F4Q17 guidance, ongoing execution issues coupled with management changes and an interim CEO, we no longer have confidence in the outlook. Our price target is cut to $9 (down from $16 prior) which is based on 21x our revised FY18E EPS given an uncertain growth outlook (which implies ~8-8.5x EV/EBITDA) assuming a year-end cash balance of C$60MM."

For an analyst ratings summary and ratings history on DAVIDsTEA click here. For more ratings news on DAVIDsTEA click here.

Shares of DAVIDsTEA closed at $9.30 yesterday.

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