WR Hambrecht upgrades 1-800-Flowers.com (FLWS) to hold from sell.
Analyst Craig Bibb says that, with expectations low, he thinks it will be difficult for 1-800-Flowers.com not to deliver fourth-quarter fiscal year 2005 (June) earnings per share upside. As such, he raises 6 cents fouth-quarter EPS estimate to 8 cents, and 20 cents for fiscal year 2006 to 27 cents.
Bibb notes that because of his rising EPS forecasts, sell ratings do not logically coexist, so he's also upgrading 1-800-Flowers.com to hold. He says one premise of his sell rating was "declining expectations," which his estimate changes refute.
Using an expected latest 12 months EBITDA multiple of 10 (up from 9 earlier), he now looks for 1-800-Flowers.com shares to reach $7.50 in one year.