UPDATE: J.P. Morgan Downgrades Zumiez to Neutral, Lowers PT
In a report published Monday, J.P. Morgan & Co. downgraded its rating on Zumiez (NASDAQ: ZUMZ) from Overweight to Neutral, and lowered its price target from $34.00 to $20.00.
J.P. Morgan noted, “We are downgrading shares of ZUMZ to Neutral from Overweight as we believe the coinciding comp deceleration along with a slowing topline in the recently acquired Blue Tomato business may continue to weigh on shares in the face of difficult 1H13 comp and margin compares. We recognize that with ~30 years of positive comps, ZUMZ's management team is among the best in the field and we expect this competitive advantage to persist. Nonetheless, we are downgrading shares at present, as we believe risks remain in the near-term and we expect to see ongoing downward revisions to consensus estimates of $1.71. We could look to return to the story if we were to gain comfort around ZUMZ's ability to drive at least +MSD domestic comp gains and as the Street is given more clarity around the expectations and impacts of Blue Tomato.”
Zumiez closed on Friday at $20.57.
Latest Ratings for ZUMZ
|Feb 2016||Brean Capital||Upgrades||Hold||Buy|
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