Brean Capital Expects More Good News for Tilly's, Inc.

In a report published Thursday, Brean Capital analyst Liz Pierce reiterated a Buy rating and $18.00 price target on

. In the report, Brean Capital noted, "TLYS ended FY14 on a strong note with comps and earnings beating our estimates as well as the Street's. Moreover, with upcoming easy compares, greater product differentiation and an improving macro landscape, we believe the cycle of good news has just started. TLYS is also one of the few specialty retailers that still has significant organic growth, both 4-wall and direct, both of which bode well for meaningful top-line growth. Finally, its history of strict financial discipline and limited infrastructure spending on the near-term horizon sets the stage for operating margin leverage. Accordingly, we reiterate our Buy rating and our $18 TP. Our $18 target price is based on a multiple of 24x and our FY16 EPS of $0.75 and a PEG ratio of 1x." Tilly's, Inc. closed on Wednesday at $13.42.