CSFB Lowers Too Inc. to Buy

Analyst Kimberly Greenberger says the potential for upside to EPS is more muted in weak sales environment

Credit Suisse First Boston downgraded

Too Inc. (TOO ) to buy from strong buy after the company says it sees $0.76 4Q EPS on an estimated 1%-2% comparable store sales decline.

Analyst Kimberly Greenberger says the potential for upside to EPS is more muted given the current weak sales environment. She thinks the stock is approaching full valuation. Until she sees signs of stabilization in same-store sales in flat to positive territory, Greenberger believes that current estimates fairly represent achievable EPS. Despite the downgrade, she maintains a buy opinion given the company's dominant brand and solid position in its target demographic. The analyst sees $1.22 EPS for fiscal 2002 and $1.45 for fiscal 2003. Greenberger has a $30 12-month price target on the stock.

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