New FY2012 Estimates For DEST

Sterne Agee has published a research report on Destination Maternity Corporation

that introduces FY2012 estimates. In the report, Sterne Agee writes "We are introducing a FY12 estimate for the year ending September 2012 of $4.07. Our estimates for FY10 and FY11 are unchanged at $3.03 and $3.67, respectively, and include about $0.20 in annual expense tied to options. Our FY12 sales estimate is for a gain of 4.7% to $593.6 million as the firm benefits from the expansion at Macy's (M-$23.04-Neutral Rated) which begins midway through FY11 in February to 615 doors from 113 presently. We project operating margin expansion to 7.9% from 7.4%." Sterne Agee maintains its Buy rating and $43 price target. Destination Maternity Corporation closed yesterday at $36.25.