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Zumiez keeps Wall Street talking

By FashionUnited

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The Gap Inc. was trading around 32.10 dollars per share on Tuesday, gaining approximately

0.60 percent. Meanwhile, Michael Kors Holdings Ltd added 1.82 percent to 52.11 dollars and Limited Brands, Inc. (NYSE:LTD) added 0.08 percent to 48.48 dollars.

Still in Wall Street, Zumiez remained one of the most watched stocks, with Bank of Amerika lowering its rating on the stock. “We are changing our rating on Zumiez to ‘Underperform’ from ‘Buy’ and lowering our Price Objective to 19 dollars from 31 as we see risk to 2013 estimates and a lower probability of a December rebound. Trends at Zumiez have been moderating since the early Back to School season, but we thought a December rebound was likely if weather cooperated. However, after bad snow conditions continued into December, we think recent weak comps are likely to continue. Furthermore, we think consensus 2013 estimates are too high. With the stock trading at a group average multiple of 14x our F2013 estimates, we see downside if comps disappoint and estimates are reduced,” Bank of America’s analyst wrote ina note to investors on Tuesday.

Several other analysts have also recently commented on the stock. Analysts at Piper Jaffray cut their price target on shares of Zumiez to 18 dollars in a research note to investors on Monday, December 10th. Separately, analysts at Imperial Capital cut their price target on shares of Zumiez from 25 dollars to 23 in a research note to investors on Friday, November 30th. They now have an in-line rating on the stock. Finally, analysts at Jefferies Group cut their price target on shares of Zumiez to 20 dollars in a research note to investors on Friday, November 30th. Zumiez traded up 2.85 percent on Friday, hitting 20.19 dollars and compared to its 1-year low of 18.58 dollars and a 1-year high of 41.96.

In Hong Kong, Esprit shares fell 1.4 percent to close at 11.68 Hong Kong dollars trading yesterday. Michael Ying, the company’s former chairman, more than doubled his stake in the Hong Kong-based clothing retailer to 10.3 percent in November.
FashionUnited