Roth Capital Maintains Buy On American Apparel As New CEO Brings Significant Retail & Apparel Experience
In a research report issued today, Roth Capital analyst Dave King maintained a Buy rating on American Apparel (NYSE:APP) with a $1.25 price target, as the company announced the termination of founder and former CEO Dov Charney and the hiring of new CEO Paula Schneider.
King observed, “We are encouraged by this appointment, given Schneider’s significant retail and apparel experience. Investors will likely view this news positively as it alleviates leadership uncertainty and given perceived prior mismanagement and the potential for reduced future headline risk. Our Buy rating reflects APP’s broad global appeal and the potential for a profitability rebound through cost reductions.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dave King has a total average return of -1.8% and a 59.3% success rate. King has a -35.1% average return when recommending APP, and is ranked #2695 out of 3413 analysts.