SunTrust Robinson Humphrey provided its outlook on Tilly's Inc TLYS. The analysts reiterated their Neutral rating and lifted the price target to $8 from $6.50, following solid Q2 results.
The company reported Q2 EPS of $0.05, well above both STRH and Street of $(0.03) and 5/25 guidance of $(0.06)-0.00.
"The beat was broad-based with sales, comps, GM and SG&A all above consensus despite inconsistent traffic trends," wrote SunTrust, noting all categories were positive except women's, where it was late on a few new key fashions.
The analysts maintained their Q3 EPS estimate of $0.11, and raised the F16 and F17 EPS estimates to $0.27 and $0.33 from $0.22 and $0.32, respectively.
The new $8 price target assumes 3.3x their F17 EBITDA estimate, a discount to its 5.1x historical average.
"Despite its unique business model, differentiated product and solid leadership, we are challenged to justify a meaningfully higher multiple until management can illustrate a consistent track record of beating consensus expectations and coming in at least at the mid-to-high end of its guidance," the analysts said.
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