Piper Jaffray Reiterates Overweight on Coldwater Creek (CWTR)

Piper Jaffray is out with a research report this morning, where it reiterates its Overweight rating on Coldwater Creek Inc. CWTR; it has an $11.00 price target on the stock. The PJ analysts said that they continue to recommend CWTR shares in view of what they believe to be the company's opportunity to lap last year's margin-eroding, double-digit same-store sales gains in the Fall with profitable, low-single-digit gains this year. This comes the day before CWTR is to report earnings. They added promotional activity progressively got better month to month, from 50% off to 25% off. They also noted that the company is less reliant on the denim category, which is slow to be adopted by customers. As for valuation, they remarked, “We rate CWTR Overweight with an $11 price target based on 8x FY12E EV/EBITDA assuming $121M of EBITDA.”