NWY: Looking For Consistent Performance

Analysts at Piper Jaffray reiterate their "neutral" rating on New York & Company Inc NWY. The target price for NWY has been reduced from $5 to $4. NWY’s outlook for Q2 is below expectations. The analysts say, “Longer-term, we believe NWY's new strategies (such as a focus on outlets) are beneficial, but believe investors may be impatient in the next six to nine months as investments in the strategy will likely outweigh returns.” The analysts earlier had downgraded NWY’s shares as “we were concerned about the company's ability to deliver earnings recovery as quickly as investors had hoped for.” Piper Jaffray adds, “We are remaining on the sidelines with respect to NWY until we begin to see the company's new initiatives deliver consistent results…. With the on-boarding of Greg Scott to the COO role for the eventual CEO role upon current CEO Richard Crystal's retirement in early 2011, we believe NWY could be poised for a change with respect to processes and merchandise—both of which may be a welcomed perspective in an increasingly competitive landscape that is retailing.” More Analyst Ratings here