Buckle Q4 Report Not a Thesis Changer, UBS Says

MT Newswires Live03-17 00:09

Buckle's (BKE) Q4 results did not change thesis for the company amid its "solid" playbook, UBS said in a Sunday report.

The firm showcased its merchandise margin resilience despite tariff challenges in Q4, but UBS said it expects limited EPS growth in the near term due to comparable sales deceleration.

Still, the report pointed to the specialty retailer's "solid" playbook to drive long-term sales growth, maintain high EBIT margins, and deliver steady cash returns to shareholders.

The note said forecasts for long-term EPS growth and dividend yield justify some 11x price-earnings ratio.

"We doubt this growth potential drives stock outperformance," the report said, expecting more compelling opportunities across its coverage universe.

"We continue to see BKE as a fairly priced stock," it said. UBS cut its price target to $53 from $55 and kept its neutral rating.

Price: 49.70, Change: -0.58, Percent Change: -1.15

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment