'All Good At Sequential Brands Group,' Says Wunderlich

In a report published Monday, Wunderlich Securities analyst Eric Beder reiterated a Buy rating on shares of Sequential Brands Group Inc SQBG, with a $15 price target ahead of its fourth-quarter earnings results on Wednesday.

"As befits its steady nature, we are highly confident in our 4Q and 2015 projections and view any acquisitions or major license expansions as driving higher margin top and bottom line upside," Beder wrote. "Further, we believe there remains material acquisition opportunities for the company and the potential for the Galaxy Brands deal to drive even higher upside than projected, especially if they can diversify the retailer mix."

Beder noted that the Street's fourth-quarter earnings per share estimate of $0.13 is "achievable" especially following the Galaxy Brands acquisition and its exposure to Wal-Mart while the company's Ellen Tracy brand "shined" during the holiday season.

The analyst also noted that if the company further takes steps to transform Revo and Heely's to a "lifestyle brand," estimates and projections could prove to be conservative.

Looking forward, Beder expects two to three accretive purchases being a "highly achievable" goal in 2015, which could result in the company achieving its $100 million revenue goal a year earlier than originally projected.

Bottom line, the analyst stated that the company is "fully on track" for solid organic growth and upside in 2015 and beyond and that the upcoming fourth-quarter report will be a "warm-up" for another solid year.