Market Overview

UPDATE: KeyBanc Capital Markets Upgrades DSW to Buy on New Store, Margin Growth

Related DSW
Sterne Agee Downgrades DSW, Lowers Estimates
Benzinga's Top Downgrades

KeyBanc Capital Markets raised its rating on DSW (NYSE: DSW) from Hold to Buy and established an $81 price target.

KeyBanc Capital Markets said, "Despite its premium valuation, we think DSW is well positioned to capture further gains. The Company has shown a strong ability to drive traffic and transactions despite difficult comparisons and a weak retail environment (with seven quarters of earnings beats). We now see additional levers to drive operating margins toward the 12% target, including a new vehicle for store growth and the likely rollout of higher-margin categories. When excluding DSW's strong cash balance of $7.42 per share, our price target implies a multiple of 18.6x 2013 P/E, vs. 15.5x its current stock price and 15.5x P/E for the big-box group. Operating margins of 12% would translate to a P/E of 14.8x."

DSW closed at $68.12 on Friday.

Posted-In: KeyBanc Capital MarketsAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

Most Popular

Related Articles (DSW)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters