Benchmark Company Reiterates Hold Rating, $80 PT on PriceSmart
In a report published Friday, Benchmark Company reiterated its Hold rating and $80.00 price target on PriceSmart (NASDAQ: PSMT).
Benchmark Company noted, “Excluding a $0.04 benefit from a lower tax rate, PriceSmart reported Q1 EPS of $0.62, versus consensus of $0.62. Operating results were basically in line with our model with revenue 10 bp below our estimate and operating margin 20 bp above our estimate. The tax rate was 30.5%, versus 36.2% last year and our estimate of 34.7%, benefitting EPS by about $0.04. We increased our FY13 EPS by the $0.04 tax benefit in Q1 to $2.72, as we remain conservative on operating margin, given expected price reductions. Our price target remains $80, based on 30 times our 2013 EPS estimate, and we maintain our Hold rating.”
PriceSmart closed on Thursday at $77.31.
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