UPDATE: Bank of America Lowers Price Target on K-Swiss to $2.50

According to Bank of America, K-Swiss

price target is lowered to $2.50. Bank of America said that 3Q11 EPS of –($0.38) (excluding $0.05 EPS loss from discontinued ops), was below the fcst of –($0.21) as revenue growth of 30.6%, SGA leverage to 52.6% of sales (vs. LY 63.7%), and GM declines to 35.8% (vs. LY 40.7%) were all below the fcst. “Our PO is 12.5x our 2013E EPS of $0.20, a slight discount to KSWS historical average 2-yr forward P/E from 1999-2006 of 13x (the last time KSWS had positive EPS).” K-Swiss closed yesterday at $2.94.