Mizuho Securities Cuts Price Target on bebe stores (BEBE) Following 4Q15
Mizuho Securities maintained a Neutral rating on bebe stores, inc. (NASDAQ: BEBE), and cut the price target to $2.00 (from $2.25), following the company's 4Q15 earnings results. BEBE reported 4Q EPS of ($0.05) vs. ($0.18) LY. The results were in-line with Street estimate of $(0.04).
Analyst Betty Chen commented, "We are lowering our estimates and PT to $2 from $2.25 and remain sidelined following a slight 4Q miss and soft 1Q start on a fashion miss. While we are encouraged by management’s efforts to right-size the business with improvements in select categories thus far, we remain wary of looming difficult compares following several quarters of AUR increases with little visibility to traffic or conversion drivers. Additionally, increased marketing spend and higher inventory plans may create volatility on the long road to profitability."
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Shares of bebe stores, inc. closed at $1.87 yesterday.