Summer Infant Shares Likely To Stay Volatile, Piper Jaffray Maintains Overweight

Piper Jaffray maintained its Overweight rating on Summer Infant, Inc. SUMR with a $2 price target. The company's shares have been inherently volatile, and, as estimated by the analysts, are likely to continue to be, surrounding key events.

According to the analysts, the Q2 report by most accounts was better than modeled - sales were in line to slightly below, but margin mix and cost actions led to EBITDA much better than modeled and a clear step forward in extracting more value out of the business.

"Inventory declined mid-teens Y/Y for the second quarter in a row - working capital is directionally improving. We are allowing the Q2 beat to flow through to our FY model," wrote Piper Jaffray, adding that they anticipate further detail surrounding operating initiatives under the direction of a new CEO on the conference call scheduled Wednesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorReiterationAnalyst RatingsPiper Jaffray
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!