UPDATE: Sterne Agee Upgrades Shoe Carnival to Buy
Sterne Agee raises its rating on Shoe Carnival (NASDAQ: SCVL) to Buy from Neutral and raises its price target from $26 from $34 on 2012 outlook suggesting growth story is in place.
Sterne Agee says, "We are changing our FY12 and FY13 EPS/SSS estimates from $2.00/+1.2% and $2.27/+3.1% to $2.27/+4% and $2.57/+2.8%. SCVL is benefiting from the very strong athletic cycle which is driving higher ASPs through innovation. Also, SCVL management is seeing modest improvement in the economy, and believes that their customer has more money to spend. Besides the ongoing square footage growth in the 7.5% area, an improving ecommerce platform, and having the toning business rock its way into history, it is clear to us that SCVL is taking share from some larger family footwear players. Given the history of strong execution, an improving economy and the current trends, we expect that SCVL will continue to gain share."
SCVL closed at $26.50 yesterday.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.