Zumiez Reports Another Strong Month

Piper Jaffray has published a research report on Zumiez (NASDAQ: ZUMZ) after the company reports another strong month and is gaining share in a difficult market.

In the report, Piper Jaffray writes "We maintain our Neutral rating on ZUMZ shares but are increasing our price target to $27 (from $26) based on increased FQ3 EPS guidance of $0.36 from prior guidance of $0.30. ZUMZ beat expectations by posting a +21.5% October comp (vs. PJC +7% and consensus +7.5%), +14.4% FQ3 comp (vs. LY's -1.7%), and revenues of $135.5M (+20% y/y). While we are impressed by ZUMZ's results, we still believe shares are fairly valued at current levels as competitive pressures exist and FQ4 comps become more difficult (-1.7%). Our price target moves to $27 from $26 based on 30x FY12E EPS of $0.91."

Piper Jaffray maintains its Neutral rating and has raised the price target from $26 to $27.

Zumiez closed yesterday at $28.76.