DSW Stock Price Target Raised at Deutsche Bank

DSW’s stock price target was increased to $23 from $22 at Deutsche Bank on Friday morning.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- DSW's (DSW) - Get Report stock price target was lifted to $23 from $22 at Deutsche Bank on Friday morning. The firm has a "hold" rating on shares.

Deutsche Bank sees an increase in inbound calls on DSW as bulls are taking stock of several reasons to be constructive heading into the second half of the year.

"The company comes up against easy compares, is adding kids' in 220 stores, prominently marketing and presenting private brands and exclusives, growing...and expanding digital efforts (both dsw.com and Ebuys)," the firm wrote in an analyst note.

But the firm remains on the sidelines due to heightened expense growth and merchandise margin pressure. Deutsche Bank also said valuation appears full.

However, the firm sees upside to DSW same-store sales and is monitoring trends closely.

Deutsche Bank raised its 2016 second quarter same-store outlook to a decline of 1.9%, up from its previous view for a 2.7% drop and compared to consensus estimates of a 2.6% decrease.

Shares of DSW are advancing 0.46% to $23.87 on Friday morning.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures.

But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DSW

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