'hold' rating HOLDS after Famous Dave's CLOSINGS
Famous Dave's said Dec. 29 that it had closed its three restaurants in Richmond, Va. and planned to incur impairment charges at up to four additional company-owned restaurants. CEO Ed Rensi said the company expected to recognize approximately $4.5 million in expenses in the fourth quarter related to the move, and added that the company expects to generate cash from the sale of real estate. In response, Feltl and Co. analyst Mark E. Smith maintained his "hold" rating on the stock, along with a $22 price target. Shares are trading around $27. "We think the company is struggling operationally today with years of negative comp trends and high commodity inflation," he wrote. "We like management's strategies, but think it will take quite some time for them to bear fruit."
TARGET PRICE RAISED FOR EVINE LIVE
The former ValueVision Media's rebranding effort that changed the company's name to Evine Live Inc., has a "buy" rating from Brean Capital analyst Tom Forte. The analyst said in a Dec. 22 note that he had raised his 12-month target price for the stock by $1, to $8 a share. Forte finds promise in the company's intent to grow its mix of proprietary products from 25 percent today to more than 70 percent. He sees earning per share of 22 cents in fiscal year 2015, up from an estimated loss of 5 cents per share in the current fiscal year, and a long-term EBITDA margin of 9 percent, up from 2.8 percent in fiscal year 2013. "We are confident in management's ability to turn around the company's financial results as its senior management have more than 50 years experience in the category," Forte wrote.
Patrick Kennedy
