Friday, December 3, 2010

Zumiez (NASDAQ:ZUMZ) Boosted by Jefferies, Needham

Improving sales and upwardly revised guidance has Jefferies and Needham raising their numbers on Zumiez, Inc. (NASDAQ:ZUMZ).

Needham maintains their "Buy" rating on Zumiez while raising their price target.

Needham said, "In FY10, ZUMZ faces easy SSS and margin comparisons and we expect sales trends will continue to improve. Given the opportunity for EPS growth driven by margin improvements, we believe ZUMZ should trade in-line with the high-end of its long term growth rate of 25% to 30%, or $37."'

Jefferies kept their "Hold" rating on zumiez while increasing their EPS estimate and PT as well.

They said, "We think ZUMZ strong trends should continue over the next few quarters especially. Look for continued rising EPS and sales bias here especially as ZUMZ is well positioned with little direct competition in the mall."

Zumiez closed at $30.18, dropping $1.39, or 4.40 percent. Needham has a price target of $37 on them, raising it from $30, and Jefferies raised their price target on them from $23 to $30.

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