On Monday, UBS reiterated a Sell rating on Buckle Inc. (NYSE:BKE), with a price target set at $34.00. The firm's analysis suggests that Buckle's fourth-quarter comparable store sales and February sales trends confirm ongoing top-line challenges for the fiscal year 2024.
UBS forecasts a 13% year-over-year decline in earnings per share (EPS) for the company, anticipating that earnings pressure will continue due to weak sales and cost deleverage.
The expectation of Buckle's EPS falling below market predictions is projected to lead to a negative shift in investor sentiment and a decrease in the price-to-earnings (P/E) ratio to 8 times from the current 10 times. The price target set by UBS reflects a 12% downside from Buckle's current stock price.
Buckle's recent sales performance indicates a continuation of the fiscal challenges that the company has been facing. The UBS analyst points out that the combination of disappointing sales figures and increasing costs is likely to weigh on the company's financial results. This situation is expected to contribute to the downward pressure on Buckle's share price.
The UBS price target is based on the firm's analysis of Buckle's earnings potential and market expectations. With the target set at $34.00, it suggests that UBS does not anticipate a positive turnaround for Buckle in the near term. The firm's analysis implies that the retailer will struggle to meet the more optimistic projections held by other market participants.
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