Imperial Capital Sees Near-Term Challenges at Zumiez (ZUMZ)
Following the release of Q3 results, Imperial Capital maintained an In-Line rating on Zumiez, Inc. (NASDAQ: ZUMZ) and trimmed its price target to $23.00 (from $25.00).
"Zumiez is facing near-term challenges including a difficult external environment in Europe as it integrates Blue Tomato, weakness in its snow related business, and a footwear cycle that favors athletic styles over skate," said analyst Lee J. Giordano.
However, despite these challenges Giordano thinks Zumiez should trade at least at a level consistent with its peer group average given "long-term organic square footage growth potential and above average earnings growth potential in the 15% range over the next few years".
Imperial reduced our pro forma 2012 and 2013 EPS estimates by $0.11 and $0.13, respectively to $1.34 and $1.54.
For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.
Shares of Zumiez, Inc. closed at $20.75 yesterday, with a 52 week range of $19.28-$41.96.
"Zumiez is facing near-term challenges including a difficult external environment in Europe as it integrates Blue Tomato, weakness in its snow related business, and a footwear cycle that favors athletic styles over skate," said analyst Lee J. Giordano.
However, despite these challenges Giordano thinks Zumiez should trade at least at a level consistent with its peer group average given "long-term organic square footage growth potential and above average earnings growth potential in the 15% range over the next few years".
Imperial reduced our pro forma 2012 and 2013 EPS estimates by $0.11 and $0.13, respectively to $1.34 and $1.54.
For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.
Shares of Zumiez, Inc. closed at $20.75 yesterday, with a 52 week range of $19.28-$41.96.