Barrington Research Raises Price Target On Kirkland's On Introducing FY/16 Estimates

In a report published Tuesday, Barrington Research analyst Kristine Koerber reiterated an Outperform rating on

, and raised the price target from $24.00 to $28.00. In the report, Barrington Research noted, “We are projecting FY/16 revenue growth of nearly 12% to $618 million, supported by comparable sales growth of 3.5%. We estimate modest gross margin improvement of 20 basis points to 39.9% and 10 basis points of improvement for SG&A expense ratio to 30.0%. Our operating margin of 6.8% represents an increase of 50 basis points. Our FY/16 EPS estimate is $1.43, an increase of nearly 20% YOY. We are increasing our 12-month price target to $28 from $24. Our new price target reflects a ~20 P/E multiple, consistent with the company's growth rate.” Kirkland's closed on Friday at $23.65.