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Roth Capital Reiterates Buy, Raises Price Target On Joe's Jeans (JOEZ)

Roth Capital Reiterates Buy, Raises Price Target On Joe's Jeans JOEZ

Roth Capital released a bullish research report on shares of Joe's Jeans (NASDAQ: JOEZ) today. The firm said that the company's results, which were released on Thursday, were in line with their estimates. The analysts wrote that the 41% increase in sales and 36% increase in operating income "was impressive given a couple of one-time expenses totaling ~ $850,000."

Roth said that they are maintaining their Q2 estimate of $0.01 per share and $0.01 for FY2010. The firm is raising their FY2011 estimates from $0.10 to $0.13 "based on the performance of the retail division and the recently introduced non-denim categories and the opportunities this success suggests."

In addition, Roth analysts wrote, "We believe the JOEZ brand is entering an era of heightened growth driven by new categories, new retail stores, new licenses and international sales. In our opinion, these initiatives will broaden the reach of the brand and thereby drive new customers to the brand. Accordingly, we reiterate our BUY rating and are raising our price target to $3.56 from $2.25."

This may represent an opportunity for an investors, as JOEZ shares lost about 15% on Friday after reporting earnings on Thursday after the closing bell. It would appear that his may have been an overreaction, considering the very strong sales momentum at JOEZ. In just the last 6 months, the stock has gained over 277%. According to Roth Capital, this trend is likely to continue.

Posted-In: Roth CapitalAnalyst Color News Price Target Intraday Update Analyst Ratings


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