UPDATE: Wunderlich Securities Upgrades HSN on Multiple Positive Factors
In a report published Friday, Wunderlich Securities analyst Matthew Harrigan upgraded HSN (NASDAQ: HSNI) from Hold to Buy, and raised the price target from $63.00 to $75.00.
In the report, Wunderlich Securities noted, “We are increasing our rating on HSN, Inc. (HSNI) to Buy from Hold while raising our 2014 price target to $75 from $63. Although we remain circumspect on the still-stressed mid-market U.S. consumer, we now feel that HSN's business model has increasingly overwhelming advantages relative to most retailers, namely mobile relevance - especially for tablets, personalization, exclusive content, creative and event content integration, and flexible storefront. The new PT assumes LT earnings growth in line with that for the S&P 500, namely estimated inflation + productivity, or 2.5%. We are not expecting that much financial momentum in Q3 as a prelude to decided Q4 gains, but we believe that a seminal attitudinal change should emerge toward media + retailing HSN and its larger peer, QVC.”
HSN closed on Thursday at $63.74.
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