J.P. Morgan Reiterates Underweight Rating on Shares of The Buckle (BKE)

J.P. Morgan is out with an analyst note this morning where they reiterate their Underweight rating on shares of The Buckle Inc. BKE; they have a $35.00 price target on the stock. JPM analysts cited a recent meeting with the company’s CEO, Dennis Nelson. They said they “think comps could remain soft (anniversarying easier comparisons starting this month should help), and the company is focused on managing what it can control (SG&A).” Analysts also think “sell-side estimates are fine (could be some upside given tight expense management), but at 11x our EPS estimate, BKE shares aren’t cheap enough for us to get more positive on the stock.” JPM lowered their 2010 EPS estimate of $3.00 assumes 2% comps and margins at 22.6%, up 40 bps. Our 2011 estimate of $3.10 is based on flat comps and flat margins.”