UPDATE: Wedbush Initiates Neutral, $12 PT on Kirkland on Macroeconomic Concerns

Wedbush initiated its coverage on Kirkland (NASDAQ: KIRK) with a Neutral rating and a price target of $12 a share.

Wedbush noted, "We are initiating coverage of Kirkland's with a NEUTRAL rating and a $12 price target, which assumes that KIRK should trade at approximately 11x our 2013 EPS estimate of $1.08, which is toward the low end of our projected 10%-15% longer-term earnings growth rate and also reflects recent multiple compression among peers due to macroeconomic concerns. Our 10%-15%longer-term growth rate is based on our expectations for 8%-10% square footage growth, low-single- to mid-single-digit comps and operating margin expansion opportunities."

Kirkland closed at $10.74 on Monday.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.