UPDATE: Canaccord Genuity Reiterates Hold Rating, Raises PT on DSW

In a report published Wednesday, Canaccord Genuity reiterated its Hold rating on DSW

, and raised its price target from $62.00 to $66.00. Canaccord Genuity noted, “Our cautious stance going into Q3 was unfounded as DSW reported strong Q3 adjusted EPS of $1.02 vs. our $0.87 and consensus of $0.89.Relative to our model, lower incentive comp fully offset pre-opening expenses driving a majority of the beat (+9c), while solid comp growth (+2c) and higher gross margins (+3c) also contributed. The low end of full year guidance was raised by 5c, implying an 8c reduction to 4Q, likely due to Sandy and conservatism. While this was a good quarter, we maintain our HOLD rating as valuation at 17.5x P/E appears full.” DSW closed on Tuesday at $67.80.