UPDATE: Benchmark Reiterates Buy on True Religion Apparel

Benchmark maintains a Buy rating on True Religion Apparel (NASDAQ: TRLG) and a price target of $38.

Benchmark notes, “We believe spring/summer fashion was well received with lots of color, and strong sell through, and as product is more competitively priced. We have also noticed a trend towards flared jeans, which could drive sales in the back half of the year. We believe these replenishment trends could provide upside to estimates. Furthermore, we expect revenue to continue to grow as the Company rolls out Company-owned stores, drives comps through increased conversion. In the last quarter, the Company positively surprised on revenues, leverage of SG&A, share repurchase authorization, and announcement of a dividend. We believe the Company could surprise again on revenues and leverage of SG&A. We maintained our price target of $38, based on 8x EBITDA. We maintain our Buy rating.”

True Religion Apparel closed at $29.27 on Wednesday.

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