Merrill Upgrades Oakley to 'Buy'
Merrill Lynch upgraded Oakley (OO ), BJ's Wholesale Club, and seven other retailers to buy from neutral.
Analyst Mark Friedman says he thinks most retailers could outperform the market through March. He believes there could be possible upside earnings surprises, a seasonally strong period just ahead, accelerating sales, reasonable valuations, and a continued fashion upturn. In particular, Friedman says his upgrade of Oakley reflects increased potential for a 2004 recovery. He thinks sales of sunglasses will rebound on pent-up demand after soft sales in recent quarters.
Also, Friedman thinks a street marketing campaign, driven by young brand representatives, is also a plus for retailers. He upped the 56 cents 2003 earnings per share estimate to 57 cents, upped the 65 cents 2004 estimate to 75 cents. He has a $14 target.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Comedian Byron Allen Buys the Weather Channel for $300 Million
- Stocks Tumble in Biggest Weekly Decline Since 2016: Markets Wrap
- Musk Takes Down the Tesla and SpaceX Facebook Pages
- World's Biggest Cryptocurrency Exchange Is Heading to Malta
- A Horror Week for the Dow Has Investors Begging for Trump Respite