UPDATE: Topeka Capital Markets Initiates HSN at Hold Post Share Rally
Topeka Capital Markets initiated its coverage on HSN (NASDAQ: HSNI) with a Hold rating and a $50 price target.
Topeka Capital Markets commented, "We are initiating coverage of HSN with a Hold. Year-to-date, HSN's shares are up 37% versus a 15% gain in the S&P 500 and a 15% gain for peer Liberty Interactive (LINTA-$18.50:Buy). We see continued solid performance for HSN TV Shopping, aided by product exclusivity and e- commerce, and share repurchases driving high-teen long-term EPS and free cash flow per- share growth, reflected in the current trading multiple, which is at a premium to its peer, Liberty Interactive. However, we concede that a dividend raise, the site redesign in 2013, more aggressive share repurchases, and speculation of an acquisition, could all serve as catalysts to propel the shares higher."
HSN closed at $49.08 on Monday.
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