Wedbush Securities Initiates Cost Plus at Outperform, $12 PT
Wedbush Securities has published a research report on Cost Plus (NASDAQ: CPWM) and has initiated coverage with an Outperform rating and $12 price target.
In the report, Wedbush Securities writes, "Our 10%-15% longer-term growth rate is based on our expectations for lsd store growth, msd-hsd comps, and operating margin expansion, including gross margin upside from merchandise margin expansion and SG&A leverage on lsd comps. After a period of rapid growth during the housing boom, the company began to suffer from too many stores, the rise of numerous competitors, the decision to move away from everyday low pricing toward more promotional pricing, and too much of a focus on high-priced furniture."
Cost Plus is currently trading down $0.19 from yesterday's $9.66 closing price.
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