Piper Jaffray Reports Improving Growth Trend On Wet Seal
According to Piper Jaffray, Wet Seal (NASDAQ: WTSLA) is seeing improving comp trend.
Piper Jaffray reported that it maintains its Neutral rating on WTSLA following the company's FQ4 results. EPS of $0.06 slightly exceeded PJC and consensus estimates of $0.05. “FQ1 comp guidance of +MSD to +HSD is being propelled by strong fashion and sales momentum that started in FQ4. While the 2-year trend provides for easy comparisons until November, we remain on the sidelines until more consistency and margin stability is visible. With a new CEO and COO, we are also waiting to see if any new strategic plans develop in the near term. We've lowered our FY12E EPS from $0.22 to $0.21 but our $4 price target remains the same. We adjusted our FY12E EPS as follows: FQ1 from $0.08 to $0.07; FQ2 from $0.03 to $0.02; FQ3 from $0.05 to $0.04; FQ4 from $0.07 to $0.08; and FY12E from $0.22 to $0.21. Our price target remains constant at $4 based on 20x FY12E EPS.”
Wet Seal closed yesterday at $3.55.
