Goldman Sachs Raises PT on Ethan Allen Interiors to $19

Goldman Sachs has published a research report on Ethan Allen Interiors

and has raised the price target from $17 to $19 to reflect a higher upside valuation scenario. In the report, Goldman Sachs writes, "We stand $0.01 above the Street for the March quarter, but further below for June – when we model decelerating sales growth against stiff compares – and $0.10 below for next year ($1.18 vs. Street at $1.28). If sales growth trends continue to recent clips, we could see upside to these numbers. That said, the stock has run along with other housing-sensitive names, and appears to discount this, and more, trading at 10.1x our calendarized 2012c EBITDA estimate, and 8.7x 2013. In contrast, LOW trades at 7.2x 2013, LL at 7.1x, and BBBY at 7.2x. ETH's return on capital stands below all of these firms' returns. At 7.2x calendar 2013 EBITDA, ETH's June ‘13 EPS would have to track to better than $1.60; this would be in line with the firm's earnings scenario for $800 million in sales, 14% above the LTM run rate." Goldman Sachs maintains its Sell rating on Ethan Allen Interiors, which is currently trading down $0.38 from Friday's $23.58 closing price.