Wedbush Maintains Neutral Rating On Zumiez

According to Wedbush, Zumiez ZUMZ price target is $28. Wedbush said that despite BTE Q1 results, it believes the stock will remain range-bound given management's likely conservative Q2 guidance and even tougher compares in H2. “Given management's plans to continue expanding the store base and our checks which suggest positive momentum QTD, we believe the company will continue to post strong topline growth, aided by AUR gains. In addition, the junior's category will lap negative same-store sales trends until August, providing the company with another potential driver. However, with the stock already garnering a premium multiple (stock trading at ~20x our F12 estimate vs. teen average of ~15x) and uncertainty to consumer reaction to potentially more broad-based price increases in H2 despite the stores' unique brand/assortments mix (specifically during BTS), we believe some earnings upside is already baked in, and we maintain our NEUTRAL rating.” Zumiez closed yesterday at $26.29.