Piper Jaffray Raises PT To $6 On WTSLA

Piper Jaffray has raised its price target on The Wet Seal WTSLA from $5 to $6 based on solid FQ1 results. In its report, Piper Jaffray writes, “We are encouraged by strong business trends at WTSLA and are moving our price target from $5 to $6 following the company's FQ1 earnings report. WTSLA pre-reported sales that were up 13.3% to $156M on a +7% comp. EPS of $0.08 was in line with PJC and consensus and above LY's $0.06. We are encouraged by the company's current strategy of presenting a cleaner promotional message with better edited fashions. During the call, WTSLA announced an extensive market research project to be completed by the end of summer as well as improving in-store design and merchandising in all new Wet Seal stores. Management also stated their belief that Wet Seal has the potential to grow to 700-750 doors long term.” Piper Jaffray remains Overweight on the stock. WTSLA closed yesterday at $4.70.