Genesco Kicks Off A Strong Holiday Season

Piper Jaffray has published a research report on Genesco Inc. GCO as the company kicks off a strong holiday season, already allowing Piper to raise estimates. In the report, Piper Jaffray writes "We are reiterating our Overweight rating on GCO shares following the company's strong FQ3 results. Revenue increased +19% with comps up +9% and Nov. is tracking up +11% month-to-date. We believe GCO's strategic direction is compelling; identifying and dominating unique merchandise categories, consistently rationalizing its real estate portfolio, and growing economies of scale to leverage op margins. As such, we are increasing our FQ4, FY11, and FY12 EPS ests and raising our price target to $42 based on a revised 15x (formerly 13x) FY12E EPS of $2.81." Piper Jaffray maintains its Overweight rating and has raised the price target from $33 to $42. Genesco Inc. closed yesterday at $38.55.