Market Overview

Dillard's Is A 'Best Idea' For This Analyst

Share:
Dillard's Is A 'Best Idea' For This Analyst
Related DDS
Benzinga's Top Upgrades, Downgrades For October 30, 2018
Earnings Show That As Macy's And Walmart Go, So Goes Retail

Department store chain Dillard's, Inc. (NYSE: DDS) is an attractive story which boasts multiple growth strategies that are likely to translate to higher profits over time, according to Wedbush.

The Analyst

Wedbush's Jen Redding initiated coverage of Dillard's with an Outperform rating and $95 12-month price target. The firm also added Dillard's to its "Wedbush Best Ideas List."

The Thesis

Dillard's management team is overseeing multiple growth initiatives that can not only strengthen the relationship with customers but improve total profitability, Redding said in a note. These include store remodels, new employee incentive programs, improved relations with brands and inventory management across the e-commerce platform.

Management's many initiatives are showing signs of success, including three consecutive quarters of earnings beats, the analyst wrote. The company is scheduled to report its second-quarter results Thursday and the trend is likely to continue based on Wedbush's proprietary tracking of e-commerce data, marketing campaigns and promotional metrics.

The bullish stance on Dillard's can also be made based on the concentrated ownership structure and a high short interest where 23.57 percent of shares outstanding are shorted (as of July 12) with 14.7 days to cover, the analyst wrote.

Price Action

Shares of Dillard's were trading higher by more than 6.8 percent at $87.37.

Related Links:

Energy Sector Growth Will Help Fuel Dillard's, BofA Says In Double Upgrade

5 Analysts On Q1 Retail Earnings

Photo by Zereshk/Wikimedia. 

Latest Ratings for DDS

DateFirmActionFromTo
Oct 2018WedbushDowngradesOutperformNeutral
Aug 2018WedbushInitiates Coverage OnOutperform
Jun 2018SusquehannaTerminatesNeutralNeutral

View More Analyst Ratings for DDS
View the Latest Analyst Ratings

Posted-In: ecommerce Jen Redding retailers WedbushAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (DDS)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
JBLGoldman SachsUpgrades0.0
IMOBarclaysUpgrades0.0
JRVRKeefe Bruyette & WoodsDowngrades40.0
ADMPB. Riley FBRDowngrades2.5
EAFVertical GroupDowngrades9.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

The Richest Gamers: Drake, Elon Musk And Other Famous Video Game Aficionados

CarGurus Scores Bullish Ratings On Positive Earnings