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
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