Update: Piper Jaffray Raises Price Target On Zumiez (ZUMZ)

Piper Jaffray is raising its price target on shares of Zumiez ZUMZ to $27 from $25, but is keeping its Neutral rating after the company reported earnings.

In a note to clients, Piper Jaffray writes, "While the company reported one of the best FQ4s in its history; we reiterate our
Neutral rating on valuation. Sales increased 18% on a +13% comp and EPS of $0.49 represented a 69% y/y increase. FQ1 comp guidance of +MSD to +HSD against LY's +9% leads us to believe sales momentum remains strong. With 44 new stores (including 10 in Canada), offsets to cost pressures (merchandise mix), and unique product, we believe ZUMZ's differentiated action sports retail concept will continue to gain share in the competitive teen space. We are raising our price target from $24 to $27 based on 25x FY12E EPS of $1.10."

Shares of ZUMZ lost $1.93 in after-hours to trade at $26.25, a loss of 6.85%.