D.A. Davidson Reiterates a Buy Rating on Oxford Industries

By Ryan Adsit

In a report released yesterday, Andrew Burns from D.A. Davidson reiterated a Buy rating on Oxford Industries (NYSE: OXM), with a price target of $81. The company’s shares opened today at $72.70.

Burns observed:

“We are looking for 3Q16 revenue and EPS of $216.3 million and $(0.07), compared to consensus of $218.6 million and $(0.09). At the company’s analyst day in October, management noted that they expect results to come in below revenue and EPS guidance of $220-$230 million and $(0.05)-$0.05, due to store hour reductions from Hurricane Matthew and a Lilly shipment being pushed out into 4Q. These two headwinds had an out-sized impact on 3Q results given it is OXM’s seasonally smallest quarter. Our estimates are based on revenue growth of 8.9%, 54.3% gross margin (up 18bp), and SG&A of $121.8 million, leading to an operating margin of -0.3% (down 33bp). Given the intra-quarter company update, we view revised estimates as attainable. Exhibit I: Revenue by Segment Segment 3Q Rev Est.”

According to TipRanks.com, Burns is a 1-star analyst with an average return of -1.0% and a 42.3% success rate. Burns covers the Consumer Goods sector, focusing on stocks such as Acme United Corporation., Performance Sports Group, and Sportsman’s Warehouse.

Currently, the analyst consensus on Oxford Industries is Strong Buy and the average price target is $81, representing an 11.4% upside.

In a report issued on November 15, Citigroup also initiated coverage with a Buy rating on the stock with a $84 price target.

The company has a one year high of $77.99 and a one year low of $52.54. Currently, Oxford Industries has an average volume of 184.6K.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2016, James Wesley Howard, the PRESIDENT, LANIER CLOTHES of OXM sold 2,500 shares for a total of $174,500.

Oxford Industries, Inc. designs, sources and markets owned lifestyle brands. It also owns and licenses tailored clothing and golf apparel brands. The company operates its business through the following groups: Tommy Bahama, Lilly Pulitzer, Lanier Apparel and Southern Tide. The Tommy Bahama group designs, sources and markets men’s and women’s sportswear and related products. The Lilly Pulitzer group designs, markets and distributes upscale collections of women’s and girl’s dresses, sportswear and other products. The Lanier Apparel group designs, markets and produces men’s dress and casual apparel across a wide range of price points. This groups licensed brands include Kenneth Cole, Reaction by Kenneth Cole, Geoffrey Beene, Dockers, Nick Graham and Andrew Fezza. The Southern Tide group offers apparel bearing the Skipjack logo tailored for men, women, and youth. Oxford Industries was founded by John Hicks Lanier, Thomas C. Chubb III and Sartain Lanier in 1942 and is headquartered in Atlanta, GA.