Market Overview

DA Davidson's Bullish Stance On CSS Industries No Longer Applies


CSS Industries Inc (NYSE: CSS), a small-cap company that designs, manufacturers, and distributes seasonal products like holiday cards and every day novelty products like journals, reported its fiscal third quarter results this week, which prompted DA Davidson to step to the sidelines.

The Analyst

D.A. Davidson's Linda Bolton Weiser downgraded CSS Industries' stock from Buy to Neutral with a price target lowered from $31.50 to $24.

The Thesis

CSS Industries reported a 6 percent decline in organic sales, which was worse than the 3 percent decline expected, Bolton Weiser said in a note. The company's poor performance can be attributed to a difficult retail condition, including de-stocking by a major mass retailer.

The earnings report calls into question prior expectations of the company showing an improvement in organic sales from negative 4.5 percent in fiscal 2017. In fact, the analyst is now revising the company's fiscal 2018 organic sales rate from negative 1 percent to flat to a deterioration of 6.4 percent.

Following CSS' disappointing earnings report, changes to the stock's valuation is now justified, the analyst wrote. Specifically, a revised $24 price target is based on a target EV-to-EBITDA multiple reduction from 7.5 times to 6.5 times.

Price Action

Shares of CSS Industries were flat Friday morning, but are down around 18 percent since the start of 2018.

Related Links:

A Peek Into The Markets: U.S. Stock Futures Mixed Ahead Of Wholesale Trade Report

8 Stocks To Watch For February 9, 2018

Latest Ratings for CSS

Feb 2019DA DavidsonDowngradesBuyNeutral
Jun 2018DA DavidsonUpgradesNeutralBuy
Dec 2017DA DavidsonInitiates Coverage OnBuy

View More Analyst Ratings for CSS
View the Latest Analyst Ratings

Posted-In: DA Davidson Linda Bolton Weiser retail retailersAnalyst Color Downgrades Price Target Analyst Ratings


Related Articles (CSS)

View Comments and Join the Discussion!

Latest Ratings

FBCPiper SandlerUpgrades39.0
AVDLPiper SandlerInitiates Coverage On14.0
ATRMorgan StanleyDowngrades116.0
NVROCanaccord GenuityUpgrades153.0
REGNCanaccord GenuityUpgrades550.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at