UPDATE: Lake Street Capital Markets Initiates Coverage on Destination XL Group with Buy Rating, $9 PT on New Business Concept

In a report published Thursday, Lake Street Capital Markets analyst Mark Argento initiated coverage on

with a Buy rating and $9.00 price target. In the report, Lake Street Capital Markets noted, “Destination XL is re-inventing the big and tall men's retail business. It is rolling out a larger, higher quality retail experience while closing its legacy strip-mall based stores. We believe DXLG will attract an increasingly higher growth multiple as it continues to execute this conversion and new stores become more productive. As this happens, we estimate the stock can reach our $9.00 price target (based on 9x EV/ FY'15E $51.6M EBITDA). Longer term we estimate the fully converted DXL can generate revenues north of $600M at >15% EBITDA margin generating in excess of $90M in EBITDA.” Destination XL Group closed on Wednesday at $6.52.