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Tilly's Q2 Beat Impresses SunTrust


SunTrust Robinson Humphrey provided its outlook on Tilly's Inc (NYSE: TLYS). The analysts reiterated their Neutral rating and lifted the price target to $8 from $6.50, following solid Q2 results.

The company reported Q2 EPS of $0.05, well above both STRH and Street of $(0.03) and 5/25 guidance of $(0.06)-0.00.

"The beat was broad-based with sales, comps, GM and SG&A all above consensus despite inconsistent traffic trends," wrote SunTrust, noting all categories were positive except women's, where it was late on a few new key fashions.

The analysts maintained their Q3 EPS estimate of $0.11, and raised the F16 and F17 EPS estimates to $0.27 and $0.33 from $0.22 and $0.32, respectively.

The new $8 price target assumes 3.3x their F17 EBITDA estimate, a discount to its 5.1x historical average.

"Despite its unique business model, differentiated product and solid leadership, we are challenged to justify a meaningfully higher multiple until management can illustrate a consistent track record of beating consensus expectations and coming in at least at the mid-to-high end of its guidance," the analysts said.

Latest Ratings for TLYS

Dec 2018MaintainsBuyBuy
Dec 2018UpgradesHoldBuy
Oct 2018Initiates Coverage OnBuy

View More Analyst Ratings for TLYS
View the Latest Analyst Ratings

Posted-In: SunTrustAnalyst Color Earnings News Reiteration Analyst Ratings


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