Roth Capital Maintains Buy On American Apparel Following Earnings
In a research report released today, Roth Capital analyst Dave King maintained a Buy rating on American Apparel (NYSE:APP) with a $1.25 price target, following the company’s third-quarter results, posting EPS of ($0.11).
King observed, “Core EPS matched our estimate, as higher gross margin offset lower revenue. Retail and online sales comped negatively, while wholesale revenue grew 2%. Excluding multiple one-time charges, core expenses fell 7% YOY. Management continues to make progress in reducing expenses and inventories and reaffirmed its full year EBITDA guidance of $40M-$45M. We recommend APP for its 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 -4.0% and a 57.4% success rate. King has a -21.4% average return when recommending APP, and is ranked #3031 out of 3367 analysts.