Analysts at Piper Jaffray & Co. downgraded Zumiez today saying that the companies shares have “surpassed our target objective” and are “trading essentially in line with the long-term earnings growth rate” and they’re giving Zumez a “neutral.”
We expect shares to trade in range into the 1H of 2009 and would recommend adding to positions on sector pullbacks – longer-term, ZUMZ offers a superior investment profile. Our 2-3 year outlook remains positive, tied to square footage growth, solid category trends, and the company’s ability to orient its merchandise to evolutions in lifestyle cycles. We’ve re-set our 12-month price target to $18/share based on 20x FTME EPS (FQ4-FQ3), in line with the company’s LT earnings growth rate.
Sure, fine.
[Link: Street Insider]
