KeyBanc Downgrades Buckle, Inc. (BKE) to Hold; Valuation Call

KeyBanc downgraded Buckle, Inc. (NYSE: BKE) from Buy to Hold.

KeyBanc analyst says, "We continue to believe in the central holdings of our BKE long-term thesis - a strong reliance on third party brands, a more benign competitive environment, and a supportive farm economy should provide for 20%+ operating margins. The Company also has a disciplined history of capital return to shareholders via special dividends, and we think earnings risk is lower than most in the peer group. That said, we find its 8.8x EV/EBITDA and 2.2x EV/sales valuation fair, if not a touch rich, for a company projected to grow earnings 6-7% year-over-year and with a mid single-digit long-term square footage growth rate (compared to peer average of 6.8x EV/EBITDA and 1.2x EV/sales). We move to the sidelines."

For more ratings news on Buckle, Inc. click here and for the rating history of Buckle, Inc. click here.

Shares of Buckle, Inc. closed at $44.55 yesterday.

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