Piper Jaffray Adjusting Estimates On J. Crew After Earnings (JCG)
Piper Jaffray is lowering its earnings estimates on shares of J. Crew (NYSE: JCG) after the clothing retailer reported earnings yesterday after the bell. It still rates shares at Overweight, and has a $38 price target.
In a note to clients, Piper Jaffray states, "We are lowering FY11E and FY12E EPS to reflect increasing difficult comparisons, higher inventory levels, and a slower than initially anticipated recovery in the high end consumer. We've reduced FY11E earnings from $2.62 to $2.36 following management's guided $2.35-$2.45 range, which lowers earnings growth but still keeps it above 20% this year. Our new price target is $38 based on a 14x FY12E EPS of $2.68."
Shares of J. Crew closed the regular session at $33.43, and lost $2.18 in extended trading to close at $31.25.
