UPDATE: Bank of America Reiterates Underperform Rating, Raises PT on Iconix Brand Group on In-Line 4Q

In a report published Wednesday, Bank of America reiterated its Underperform rating on Iconix Brand Group ICON, and raised its price target from $18.00 to $21.00. Bank of America noted, “ICON reported 4Q GAAP EPS of $0.37, in-line with our forecast, as a roughly inline revenue decline of -10.9% (vs. fcst. -10.0%), 120bps of SGA deleverage and above fcst interest expense was offset by a lower than forecast tax rate. We are raising our 2013E GAAP EPS to $2.00 (from $1.95), in-line with updated GAAP guidance of $1.95-$2.05, given increased royalty revenue from the Lee Cooper acquisition. ICON also announced a share buyback authorization to repurchase up to $300MM of its common stock over a 3-yr period, which was reflected in our prior estimates (fcst ‘13 share count at 67-68MM vs. 72MM in ‘12). Our new PO of $21 (was $18), is 9-10x our new GAAP 2014E EPS of $2.20 (was $2.15).” Iconix Brand Group closed on Tuesday at $24.54.