Piper Jaffray Overweight on Wet Seal
Piper Jaffray is out with a research report on Wet Seal (NASDAQ: WTSLA) and it has an Overweight rating and it has a $6 price target on shares.
In a note to clients, Overweight writes, "We are reiterating our Overweight rating on shares on WTSLA despite the company's lower-than-expected September sales report as we believe the earnings growth trend is still intact. Our positive bias on shares of WTSLA is reaffirmed by the following operating margin drivers which we believe will support the company's 8% op margin rate goal: 1) refining of price-point categories; 2) moving to more direct sourcing overtime; and 3) expense-leverage. Longer-term, we believe the company can continue to grow its square-footage above our teen/youth comp group. The company's 700-750 store goal for the Wet Seal division implies at least a +MSD growth rate over the next several years."
Shares of WTSLA closed at $4.05 yesterday.
