J.P. Morgan Reports on The Buckle (BKE)

J.P. Morgan commented on retailer The Buckle

today. In the report, J.P. Morgan was quite negative on the company. J.P. Morgan stated, “BKE has consistently remained the most consensus short in our space, with 20%+ of the float short in the past few years, while the company was still able to grow operating margins to the highest levels in our group with positive comps in the past eight years. Recent comp strength has been driven by denim, although we note that denim becomes seasonally less important in 2Q. We think the stock is already pricing in positive earnings revisions and think the multiple could contract given the company's peakish margin levels.” J.P. Morgan has an Underweight rating on The Buckle and a price target of $40.00. The company closed down $.06 yesterday, to finish the trading day at $45.50.