FBR Capital Thinks Duluth Holdings Inc’s Stock is Going to Recover

By Jason Carr

FBR Capital analyst Eric Beder assigned a Buy rating to Duluth Holdings Inc (NASDAQ: DLTH) today and set a price target of $26. The company’s shares closed yesterday at $19.68, close to its 52-week high of $38.19.

Beder observed:

“We are reiterating our Buy rating, $26 price target and estimates for DLTH with the company announcing 2QFY18 (July) results after the close on Tuesday, September 5th. We believe, given the continued YoY growth in store openings (and the recent expansion of the company’s first store at Mt. Horeb), combined with no quarterly guidance, that Street bottom line expectations remain aggressive; we remain conservative near term until store pre-opening patterns somewhat normalize in 2HFY18.”

According to TipRanks.com, Beder is ranked 0 out of 5 stars with an average return of -5.1% and a 38.0% success rate. Beder covers the Services sector, focusing on stocks such as Signet Jewelers Limited, American Apparel Inc, and Barnes & Noble Inc.

Duluth Holdings Inc has an analyst consensus of Moderate Buy, with a price target consensus of $25.25.

Based on Duluth Holdings Inc’s latest earnings report for the quarter ending April 30, the company posted quarterly revenue of $83.69 million and quarterly net profit of $355K. In comparison, last year the company earned revenue of $65.82 million and had a net profit of $3.62 million.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DLTH in relation to earlier this year.

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Duluth Holdings, Inc. engages in the brand of men and women casual wear, work wear and accessories sold through its own channels. It also offers products, such as Long tail T-shirts, Buck Naked underwear, and Fire Hose. It operates through Direct and Retail segments. The Direct segment includes net sales from its website and catalogs.