Brean Capital Reiterates Upbeat View of EVINE Live Inc Following 4Q:14 Results
In a research report issued today, Brean Capital analyst Tom Forte reiterated a Buy rating on EVINE Live Inc (NASDAQ:EVLV) with an $8.00 price target, after the company reported fourth-quarter results, posting sales of $201MM, lower than Forte's forecast of $205MM. Shares of EVINE Live closed today at $6.19, down $0.37 or 5.64 percent.
Forte wrote, "We anticipate that the company’s senior management, collectively with more than 50 years of experience in the category, will meaningfully improve its top- and bottom-line results by increasing its mix of proprietary products (currently 25% of its SKUs vs. 70% plus for its peers). The highlight of the quarter, in our view, was the more than 10% sales growth outside of consumer electronics. Overall, we are encouraged by the initial performance of EVINE Live following the completion of the rebranding, Valentine’s Day weekend, which occurred after quarter end (January 31, 2015). The market seemed to share our sentiment as shares of EVINE Live closed 12.9% higher."
Furthermore, "We reiterate our Buy rating based on our discounted cash flow analysis that assumes the company achieves a long-term adjusted EBITDA margin of 9.0% compared with 3.4% in 2014, and we are comfortable recommending that investors purchase the shares."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Tom Forte has a total average return of 3.9% and a 68.4% success rate. Forte has a 0.5% average return when recommending EVLV, and is ranked #1723 out of 3535 analysts.