HOTT’s Traffic and Conversion Rates Improve

Analysts at B Riley & Co upgrade Hot Topic Inc (NASDAQ: HOTT) from "sell" to "buy." The target price for HOTT is set to $8.30.

According to B Riley & Co, Hot Topic’s traffic and conversion rates were stronger during December, as compared to other teen retailers. HOTT witnessed a significant increase in traffic and conversion, once it started its promotional activities, the analysts say. The analysts expect the company’s tough comparisons to ease during Q2, although the comparisons are likely to be challenging during Q1.

Hot Topic has an evolving core business that can be developed further, according to B Riley & Co. Although investor confidence in this stock is at very low levels, the current valuation is an attractive entry point for value/turnaround investors, the analysts say.