Jefferies Reiterates Hold Rating on Zumiez (ZUMZ)

Jefferies & Company is out with a research report this morning, where it reiterates its Hold rating on Zumiez

; it has a $16.00 price target on the stock. The Jefferies analysts cited the company’s recently release same store sale data, which was rather strong, at 9.3%. The company’s Q3 guidance was slightly below the consensus, though. The analyst noted that the company’s men and accessory segments where ZUMZ is benefiting from its exclusive brand offering. They also noted that the juniors segment appear to be troughing with declines much lower in magnitude vs. Q1. As for valuation, the analysts remarked, “ZUMZ trades at ~25x '10 EPS and 8x EV/EBITDA. Our $16 PT is based on 26x EV/EBITDA and 8x P/E. These multiples are above the group average but in line with company history. While the LT growth profile is not as in years past, we believe a premium is appropriate to account for depressed fundamentals.”