A day after Shoe Carnival, Inc. (NASDAQ: SCVL) delivered disappointing quarterly results and narrowed its full-year outlook,
Jeffries remains on the sidelines, citing valuation concerns. However, analysts Randal Konik and Janie Stichter boosted the price
target from $24 to $29 and maintained its Hold rating on the stock.
The brokerage liked the company's prospects on a long-term basis, especially its strength in women's category in smaller
markets. At the same time, most of the expectations were already factored into the shares of the company for the near term. The
analysts believe shares are trading higher than rivals.
Related Link: 4 Takeaways
From Citi's Back-To-School Shoe Survey
"We have raised our PT to $29 from $24 to reflect our upwardly revised FY'18 EPS est, which was driven by share repo activity.
Valuation/Risks Our $29 PT is based on 15x P/E and 6.2x EV/EBITDA, above peers and similar to historical averages. Risks include
deceleration in fashion trends, online competition, and execution risk," the lead analyst told clients in a research note.
The brokerage suggested the second-quarter results presented mixed performance in category. While a recovery in sandals was
present, a slowdown in adult athletics offset the strength.
The lead analyst is encouraged by the Shoe Carnival's improvement in the current quarter trend ahead of the back-to-school
season. The brokerage sees considerable opportunity on the hopes that normalized weather would drive sales and offer better
margins.
At time of writing, Shoe Carnival was down 12.07 percent on the day, trading at $26.08.
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Latest Ratings for SCVL
Date |
Firm |
Action |
From |
To |
Sep 2016 |
Jefferies |
Maintains |
|
Hold |
Jun 2016 |
Sidoti & Co. |
Initiates Coverage on |
|
Neutral |
May 2016 |
Jefferies |
Maintains |
|
Hold |
View More Analyst Ratings for
SCVL
View the Latest Analyst Ratings
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