Every time we read notes from the analysts we’re haunted by something Bob McKnight said, “Analysts are just one letter away.” So with that, here’s what Piper Jaffray is saying about Zumiez.
We are upgrading ZUMZ from Neutral to Buy given our belief that shares have over corrected based on current macroeconomic concerns, irrespective of underlying med- to long-term fundamental growth potential. We believe ZUMZ occupies a unique market niche in the active lifestyle category where demand trends remain relatively firm, evidenced by continued above average comp sales growth rates relative to the peer group. At 300 stores, ZUMZ maintains 20%-plus sq ft growth potential for at least 3-4 years and while we are revising estimates downward and new store contribution remains inferior to historic levels, we think shares reflect these risks.”
If we bought action sports stocks, we’d think about it. What with fashion retail being so hot these days.
[Link: Street Insider]
