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Wunderlich Is Bullish On Sequential Brands

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In a recent report by Wunderlich Securities, analysts reiterated their Buy rating on Sequential Brands Group Inc (NASDAQ: SQBG) and set a $15.00 target for the stock.

After a generally upbeat day of presentations at the 2015 ICR XChange Conference, analysts are optimistic about the prospects for Sequential.

Strong Holiday Sales

According to Wunderlich, other leading retailers have reported strong holiday sales numbers this year, and Sequential is likely no exception to the trend.

An improving economy, lower gas prices and relatively warm national weather this winter have all contributed to a profitable holiday season for retailers.

Organic Growth

Analysts see strong single-digit organic growth in 2015 for Sequential. The report identifies three potential growth targets for the company: category expansion, international expansion and e-commerce.

Licensing Revenue

Analysts believe that licensing will continue to drive earnings for Sequential in the future. The company's aggressive addition of brands and categories -- and its expansion into leading department and discount stores via licensing deals -- is a recipe for long-term success.

Growth Via Acquisition

Management intends to add $30 million in revenue via acquisitions in 2015. By maintaining discipline in its selection process, management believes it will not have to pay more than seven times forward earnings before interest, taxes, depreciation and amortization (EBITDA) for potential acquisitions.

Outlook

Wunderlich analysts believe that Sequential Brands remains on the rise. They conclude: “With verdant internal growth opportunities, solid access to capital, continued strong acquisition candidates and the ability to aggressively leverage a solid infrastructure, Sequential remains the best positioned of the brand licensing plays.”

Latest Ratings for SQBG

DateFirmActionFromTo
Jun 2017CL KingDowngradesBuyNeutral
Jun 2016Brean CapitalAssumesBuy
Dec 2015PiperJaffrayMaintainsOverweight

View More Analyst Ratings for SQBG
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Posted-In: Analyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas

 

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