UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on The Buckler on Mixed Factors

In a report published Thursday, J.P. Morgan analyst Brian J. Tunick reiterated a Neutral rating on

, and raised the price target from $46.00 to $50.00. In the report, J.P. Morgan noted, “A low-single-digit unit growth story, top-line has been driven by BKE's strong comps. However, with a recent deceleration in comps, investors have grown wary of the trajectory for trends. The company has been increasing its sales per square foot to $475 in FY12 up from $335 in FY07, while posting its fourth consecutive EBIT margin north of 22%. We also note that the vast majority of BKE's expenses are variable. Due to a payout structure largely focused on incentive comp and commission based selling, we believe annual Selling expenses will remain ~18% of sales level regardless of topline changes and we forecast G&A expenses to round out in the 3.0%-3.5% range of sales. If the company can maintain their EBIT margin profile, the business can throw off in excess of $150mm in annual free cash (~$3.30+ per share) which would add to company's strong balance sheet today and continue on its path of returning cash to shareholders through dividends.” The Buckle closed on Wednesday at $51.54.