UPDATE: Credit Suisse Upgrades DSW to Outperform on Long-Term Growth Potential
In a report published Friday, Credit Suisse analyst Seth Sigman upgraded the rating on DSW (NYSE: DSW) from Neutral to Outperform, and raised the price target from $70.00 to $73.00.
In the report, Sigman noted, “We are upgrading DSW from Neutral to Outperform. We raising our price target from $70 to $73, which reflects 16x our 2014 EPS estimate, ex-cash, and is based on peer-multiple analysis and long term EPS buildup. The combination of higher investment spend in 2012 and lofty expectations previously kept us on the sidelines, despite our favorable view of this business model, the growth opportunity and management team. Expectations have come down materially ($0.30+ for '13), primarily due to the weaker start to Q1, which we attribute mostly to colder weather. Yet our channel checks around the U.S. suggest that sales are healthy where weather is favorable.”
DSW closed on Thursday at $63.39.
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Tags: Credit Suisse