Analyst Sees Signs of Stabilization at Wet Seal (WTSL)

KeyBanc reiterated a Buy rating on Wet Seal (NASDAQ: WTSL) with a price target of $4.00. Comments follow Q4 results. Analyst Edward Yruma noted positive signs.

"While the 1Q proved to be another difficult quarter for The Wet Seal, Inc we believe the Company began to show signs of stabilization. Trends in the 1Q were difficult as evidenced by a -16.9% comp, but came in in line with previous guidance, and there were some signs of improvement. We expect the teen retail environment to remain difficult, but believe The Wet Seal’s new strategic initiatives should help improve results during 2014. The Company reported an adjusted 1Q14 EPS loss of $0.18, slightly below the consensus estimate of -$0.17, but below our estimate of -$0.19. We believe the Company presents significant upside opportunity for risk tolerant investors and reiterate our BUY rating and $4 price target," said Yruma.

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

Shares of Wet Seal closed at $1.01 yesterday.

You May Also Be Interested In

• Freedom Broker Upgrades Morgan Stanley (MS) to Buy
• U.S. Bancorp (USB) PT Raised to $74 at DA Davidson
• Green Plains Renewable Energy (GPRE) PT Raised to $20 at UBS Ahead of Q2 Results