FBR Capital Thinks Iconix Brand’s Stock is Going to Recover

By Jason Carr

In a report released today, Eric Beder from FBR Capital assigned a Buy rating to Iconix Brand (NASDAQ: ICON), with a price target of $8.50. The company’s shares closed yesterday at $5.72, close to its 52-week low of $4.79.

Beder wrote:

“We are reiterating our Buy rating, estimates, and $8.50 price target on ICON after meeting with Iconix management. With financial pressures basically cured for the near term and the company focused on driving organic revenue growth and new licensing agreements for key brands, we believe that ICON, trading under 8.5x our somewhat conservative 2018 EPS projection, represents a compelling investment in the current management team and a shifting business model that still provides material visibility and free cash flow. We also believe that, as the company moves key brands to new homes, investors will view the perceived risks to the business model as shrinking and drive higher valuations.”

According to TipRanks.com, Beder is ranked 0 out of 5 stars with an average return of -4.6% and a 39.3% success rate. Beder covers the Services sector, focusing on stocks such as Signet Jewelers Limited, Barnes & Noble Inc, and New York & Company.

Iconix Brand has an analyst consensus of Moderate Buy, with a price target consensus of $10.17.

Based on Iconix Brand’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $61.65 million and GAAP net loss of $61.66 million. In comparison, last year the company earned revenue of $95.74 million and had a net profit of $11.58 million.

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Iconix Brand Group, Inc. is a brand management company, and owner of diversified portfolio of over 30 global consumer brands. It operates through the following segments: Women’s, Men’s, Entertainment, Home, and International. The company was founded in 1978 and is headquartered in New York, NY.