Wunderlich Securities Reiterates Hold, Raises PT On DSW On 4Q Preview

In a report published Tuesday, Wunderlich Securities analyst Danielle McCoy reiterated a Hold rating on DSW Inc. (NYSE: DSW), and raised the price target from $29.00 to $34.00.

In the report, Wunderlich Securities noted, "Given the recent +20% rally in DSW Inc. (DSW) as confidence builds in its ability to drive potential upside in FY16E due to easy comparisons, we raise our price target to $34 (from $29), maintaining our 16.6 multiple as we base our valuation on our FY17E EPS. With DSW to report 4Q results on March 17, we expect management to be more bullish, given what we view as improving business trends driven by better product assortment, more favorable weather vs. last year, and the port strike potentially acting as a one-time benefit in 1HFY16. That said, with DSW trading 17.7x forward EPS, a hefty premium compared to peers trading 14.4x, we believe all of these near-term positives are priced into the stock. Our Hold rating reflects our long-term outlook and struggle for sustainable growth drivers."

DSW closed on Monday at $37.53.