PIR Poised For Accelerated Earnings Growth
Analysts at BB&T Capital Markets initiate coverage of Pier 1 Imports Inc (NYSE: PIR) with a “buy” rating. The price target for PIR is set to $11.
The price target reflects an upside potential of 28% at the current levels. “The U.S. macroeconomic environment has rebounded over the last several months, which we believe will provide a tailwind to Pier 1’s near-term results. Given the rash of competitor store closings over the last few years, we believe Pier 1 is poised to generate healthy near-term market share gains in a more benign competitive backdrop,” the analysts say.
With the successful execution of various merchandising, restructuring, cost-trimming and other financial initiatives, PIR appears to be poised for accelerated earnings growth. “We believe the strategic and operational initiatives Pier 1 has successfully completed are not yet being adequately reflected in its financial performance, which we expect to begin to change in FY’10,” the analysts elaborate.
