As of March 14, 2018, most of the analysts that covered DSW (DSW) maintained a “hold” rating on the stock. Of the 14 analysts covering DSW stock, 71.0% recommended a “hold,” and 29.0% recommended a “buy.”
After the company’s results announcement, Susquehanna and Canaccord Genuity revised their price targets for DSW. Susquehanna slashed its price target to $26.00 from $29.00, whereas Canaccord Genuity increased it to $22.00 from the $20.00 projected previously. We can expect more changes in the coming days.
As discussed earlier, DSW reported fiscal 4Q17 results on March 13, 2018. The company’s revenue of ~$720 million missed analysts’ estimate of $728.2 million, but the adjusted EPS of $0.38 beat the analysts’ projection of $0.27. On a year-over-year basis, both the metrics registered growth of 6.7% and 90%, respectively
Currently, the analysts’ 12-month average target price for the company is $22.23, which reflects a 4.4% upside to its stock price on March 14, 2018.
Where do peers stand?
Of the 22 analysts covering Foot Locker (FL), 32.0% gave it a “hold” rating, while 59.0% gave it a “buy” rating. For Shoe Carnival (SCVL), 60.0% of all the analysts covering the stock recommended a “hold” rating while 40.0% rated it a “buy.” For Finish Line (FINL), ~13.0% of the 16 analysts covering the stock recommended a “buy” rating while 63.0% rated it as a “hold.”
Currently, analysts’ target price for Foot Locker is $51.60, reflecting a 19.3% upside to the stock price as of March 14, 2018. Shoe Carnival’s mean target price is $28.60, which indicates a 23.4% upside to its stock price as of March 14, 2018. Finish Line’s mean target price is $12.44, which indicates a 21.8% upside to its stock price as of March 14, 2018.
On March 14, 2018, DSW was trading at a 12-month forward PE (price-to-earnings) ratio of 13.1x. Following fiscal 4Q17 results, the valuation multiple for DSW has increased 9.1%.
In comparison, Foot Locker, Finish Line, and Shoe Carnival were trading at 12-month forward PE ratios of 9.6x, 13.4x, and 12.4x, respectively, on March 14, 2018.