UPDATE: Goldman Sachs Reiterates Buy Rating, Raises PT on Tilly's

In a report published Friday, Goldman Sachs Group reiterated its Buy rating on Tilly's

, and slightly raised its price target from $17.00 to $18.00. Goldman Sachs noted, “We are reducing estimates to reflect a -1% quarterly comp and $0.29 EPS. Despite the disappointing quarter, there is no change to our up low-single digit comp forecast for 1H2013 and up mid-single digit forecast for 2H2013. First, we do not see any impairment to the TLYS brand and still see room for store productivity to improve towards $450 per square foot from sub-$400 today as brand momentum and store execution improve. Second, we attribute the 4Q miss to normal quarter-to-quarter volatility and not a broader brand issue. Additionally, we see holiday results as a testament to the strength of TLYS' rapid sourcing business model, with the 4Q shortfall driving under -100 bps of operating margin compression. This is a far less material contraction that a typical specialty model would book with a -300 bps comp shortfall.” Tilly's closed on Thursday at $13.06.