Tuesday, January 11, 2011

Perry Ellis (NASDAQ:PERY) Has Revenue Growth Opportunity Across the Board

Perry Ellis (NASDAQ:PERY) looks positioned to grow strongly in 2011, with Needham & Company noting in all their segments they're looking solid.

Needham said, "PERY’s diverse brand portfolio provides revenue growth opportunities in wholesale, retail, licensing & International. Long term growth will be fueled by Perry Ellis, Men’s wholesale through growth in golf and Hispanic, swim, Retail, Licensing, and Women’s (Laundry, C&C and recent acquisition Rafaella). At -11x our increased FY11 EPS estimate of $2.56, PERY is trading below the sector average of -13x. We think PERY should trade at least in-line with its peer group of -13x, given its long term growth rate of 14% to 16% as we expect revenue, GM, and EBITDA expansion in 2010 and beyond."

Needham & Company maintains a 'Buy' rating on Perry Ellis, which closed Monday at $30.01, gaining $1.17, or 4.06 percent. Needham increased their price target on them from $28 to $34.

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