UPDATE: KeyBanc Capital Markets Upgrades True Religion Apparel to Hold on Sale Possibility
KeyBanc Capital Markets raised its rating on True Religion Apparel (NASDAQ: TRLG) from Underweight to Hold and suspends its previous $18 price target.
KeyBanc Capital Markets noted, "The WSJ reports that TRLG has engaged advisors in a sale process; we move our rating to HOLD. … We believe valuation warrants a HOLD given the potential for being acquired. On its current stock price, the Company trades at 11.6x 2012 P/E, compared to 14.5x 2012 P/E for the apparel peer group. Additionally, the Company's current valuation is 4.0x 2012 EV/EBITDA and 0.9x 2012 EV/Sales, compared to 8.3x EV/EBITDA and 0.9x EV/ Sales for the apparel peer group."
True Religion Apparel closed at $21.01 on Tuesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.