Piper Jaffray Comments On Hot Topic Following Recent Conference Call

Piper Jaffray is maintaining its Underweight rating on Hot Topic HOTT shares following yesterday afternoon's discussion of FQ4 results and FY12 outlook. With a newly appointed CEO signaling necessary change, the strategic priorities continue to be merchandising improvement, operational efficiencies, and cost reductions. While Piper believes the shift to a younger customer, the validity of the Torrid concept, and a strong slate of upcoming movie releases could provide some upside momentum, it still sees weakness in fashion apparel, increased promotions and requisite time needed to effect these changes as barriers to performance. Piper has adjusted its FY12E EPS from $0.13 to $0.12 but our $5 PT remains unchanged. Piper Jaffray has an Underweight rating and $5 PT HOTT closed Monday at $5.95