Stifel Nicolaus Reiterates Buy, $20 Target on Gordmans Stores

Stifel Nicolaus maintains its Buy rating and $20 target price on Gordmans Stores, Inc. GMAN as 3Q margins came above expectations. Stifel comments, “Gordmans Stores Inc. reported 3Q EPS of $0.25 per share, well above our estimate and consensus of $0.19 per share, versus 3Q10 adjusted EPS of $0.22. The better than anticipated earnings were driven by a shift of $0.04 in SG&A expense associated with advertising as management shifted ad spend into 4Q to maximize its impact. Without this benefit EPS would have declined $0.01 per share or 5%.” GMAN closed at $12.85 per share on Wednesday.