UPDATE: Stifel Reiterates Buy Rating, Lowers PT on Tilly's on Guarded Outlook for Holiday

In a report published Wednesday, Stifel analyst Richard Jaffe reiterated a Buy rating on Tilly's TLYS, but lowered the price target from $18.00 to $15.00. In the report, Stifel noted, “Tilly's Inc. reported 3Q EPS of $0.22 (company guided $0.19-$0.22), in line with our estimate and consensus, representing a 26% decrease from adjusted 3Q12 EPS of $0.30. The earnings decline y/y was attributable to significant deleverage of buying, occupancy and distribution costs on the lower sales volume due in part to a shift of one week of BTS selling from 3Q into 2Q (impact of roughly $8 million). Management is cautious regarding Holiday, given the highly promotional mall environment and soft sales trend in 3Q. However, their focus on maintaining a lean and current inventory level will likely limit product margin pressure. We anticipate that the guarded outlook for 4Q will pressure shares tomorrow. We would be buyers in weakness. We reiterate our Buy rating and 12 month target price of $15.” Tilly's closed on Tuesday at $15.88.