Benchmark Initiates Coverage Of ICON

Benchmark has initiated coverage of Iconix Brand Group ICON with a Buy Rating and a $25 PT. According to the report, "We contend that the shares have upside potential given the Company's growth opportunities through acquisitions, international expansion, and domestic organic growth. We believe over the next couple years, Iconix could continue to make accretive acquisitions, taking advantage of the current retail environment, which could lead to years of revenue growth. Through new and existing international relationships, we believe the Company could continue to drive revenues and expand operating margins. Given the stable, diversified revenue stream, a solid balance sheet, strong cash flow, and solid profitability, we have set a price target of $25 based on 16x our FY11 EPS estimate of $1.55." ICON closed yesterday at $20.07.