logo
  Join        Login             Stock Quote

DSW (DSW) Reduced To 'Hold' By Brean Capital On Too High Expectations

 January 07, 2013 01:31 PM
 


(By Balachander) DSW Inc. (NYSE: DSW) shares were reduced to "hold" from "buy" by Brean Capital LLC due to the combination of poor retail industry comps and aftermath from Hurricane Sandy lingering longer than expected.

The brokerage also lowered its above the Street 4QFY13 EPS estimate to $0.65 from $0.74 and adjusted FY14 EPS projection to $3.84 from $3.90.

Brean Capital wrote that the combination of poor retail industry comps suggested a weaker-than-anticipated Holiday selling season for the sector.

The aftermath from Hurricane Sandy lingering longer than expected has placed unforeseen pressure on 4Q brick and mortar sales, the brokerage said.

[Related -Hewlett-Packard Company (HPQ) Put Options In Focus]

"In addition, given the minimal guidance provided by management, we believe it is necessary to be more conservative in our top-line projections and by doing so, now fall at the low end of management's guided EPS range of $3.30 to $3.40," Brean Capital said.

"We view our 17X multiple as appropriate and our revised FY13 EPS estimate of $3.31 leads us to believe DSW is currently fairly valued; we note this is on a cash adjusted basis (net cash/share 3QFY13 of $9.45)," the brokerage added.

That said, Brean Capital remains upbeat on the multiple growth opportunities set in place for FY14 and anxiously look for the next entry point with a greater risk/reward to get aggressive in the name.

DSW, a branded footwear and accessories retailer, operated 364 stores in 41 states, the District of Columbia and Puerto Rico as of December 24, 2012.

[Related -Stock Upgrades And Downgrades: AOL, APOL, CLF, DSW, GIS, VMW, VPHM]

The stock, which has been trading in the 52-week range of $42.18 to $72.00, retreated 3.60 percent to trade at $65.00 on Monday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageIn A World Of Artificial Liquidity – Cash Is King

It's more crucial now than ever for people to consider extracting a portion of cash from their bank read on...

article imageDid The IMF Provide Support To Syriza?

The IMF published yesterday a preliminary analysis on the debt sustainability of the Greek read on...

article image3 Defensive Stocks Offering Safety, Yield In A Turbulent Market

The world can be a scary place to invest these days. Greece can't pay its debts, Russia is a mess, China's read on...

article imageFour Stocks in the Dow Making Fresh 52 Week Lows

“What gets weak tends to get weaker; what gets strong tends to get read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.