PriceSmart: Long-Term View Unchanged Despite Weak Sales Trends, Says Roth Capital
In a research note published Friday, Roth Capital analyst Dave King reiterated a Buy rating on PriceSmart Inc. (PSMT) with a price target of $108, following PSMT recent quarterly report.
King commented: “PriceSmart’s 3QFY14 EPS came in a penny above estimates as stronger gross margin offset higher expenses. June comparable warehouse store sales grew just 1.0%, well below consensus of 4.5%. While sales trends remain disappointing, pressure from store cannibalization should subside over the next 12 months and the company should soon benefit from accelerating store and membership growth”.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Dave King currently has a one-year average return of 7.1% and a 55% success rate. King has a -7.9% average return when recommending PSMT, and is ranked #1152 out of 3213 analysts.