Gerard Klauer keeps its buy rating on Circuit City (CC), but remains cautious.
Analyst Scott Ciccarelli says if the company's remodeling costs exceeded his previous forecasts, and benefits take awhile to manifest (which he believes to be a reasonable assumption), then his EPS estimates could be at risk. Ciccarelli had thought Circuit City would pursue the lowest costs remodeling strategy; now, however, he believes it's keeping various alternatives open. He maintains his $0.96 fiscal 2002 (Feb) estimate and his $1.18 fiscal 2003 EPS estimate, but thinks the stock is likely to experience selling pressure until remodeling efforts become more transparent. He rates Circuit City as a buy, and has a $36 target.