Wedbush Upgrades Kirkland’s to Outperform (KIRK)
Kirkland’s (NASDAQ:KIRK) was upgraded by investment analysts at Wedbush from a “neutral” rating to an “outperform” rating in a note issued to investors on Friday, TheFlyOnTheWall.com reports. The firm currently has a $22.00 target price on the stock, up from their previous target price of $16.00. Wedbush’s target price would suggest a potential upside of 19.11% from the company’s current price.
The analysts wrote, “We view Kirkland’s as a viable competitor in home furnishings and accessories, with a well-differentiated merchandising strategy and significant organic growth opportunities. We are upgrading to OUTPERFORM given 1.) Q2 Beat: LPS came in BTE on in-line sales as MM improved dramatically as benefits from merchandising systems begin to accrue and strong inventory management. 2.) Better visibility on sustainable merchandising improvements going forward: the company has invested not only in systems, but also in personnel and better processes, which is translating to better buying in key categories such as wall décor and decorative accessories as well as higher conversion rates and average ticket; business was consistent throughout Q2 and comps turned positive in August. 3.) Guidance looks conservative: annual EPS only upped by less than Q2 beat ,with upside potential from comps and gross margin, which should more than offset important marketing investments (following successful test in Q1/Q2) to drive store traffic.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Kirkland’s in a research note to investors on Wednesday, August 7th. They now have a $19.00 price target on the stock. Separately, analysts at Sidoti downgraded shares of Kirkland’s from a “buy” rating to a “neutral” rating in a research note to investors on Thursday, July 18th. Finally, analysts at Thomson Reuters/Verus upgraded shares of Kirkland’s from a “hold” rating to a “buy” rating in a research note to investors on Monday, June 3rd.
Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Kirkland’s has an average rating of “Buy” and a consensus target price of $18.33.
Shares of Kirkland’s (NASDAQ:KIRK) traded up 5.79% during mid-day trading on Friday, hitting $19.5402. The stock had a trading volume of 109,531 shares. Kirkland’s has a 1-year low of $8.26 and a 1-year high of $19.61. The stock has a 50-day moving average of $17.82 and a 200-day moving average of $15.11. The company has a market cap of $333.8 million and a price-to-earnings ratio of 23.77.
Kirkland’s (NASDAQ:KIRK) last posted its quarterly earnings results on Thursday, August 22nd. The company reported ($0.03) earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.10) by $0.07. The company had revenue of $97.10 million for the quarter, compared to the consensus estimate of $97.76 million. During the same quarter last year, the company posted ($0.11) earnings per share. Kirkland’s's revenue was up 6.7% compared to the same quarter last year. On average, analysts predict that Kirkland’s will post $0.85 earnings per share for the current fiscal year.
Kirkland’s, Inc (NASDAQ:KIRK) is a specialty retailer of home decor and gifts in the United States.
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