Van Sinderen lifted his target to $35 from $33 and affirmed his buy rating.
Zumiez, the Lynwood, Wash., retailer of apparel and equipment, particularly for snow- and skate-related sports, is "poised to take market share," he said in a commentary cited by The Fly.
Zumiez shares recently traded up 15% at around $29. They have dropped 18% this year.
Zumiez has a trailing price-earnings multiple of 14.4, compared with its five-year average of 17.19, according to Morningstar.
As for Zumiez earnings, in the fiscal second quarter ended Aug. 1, net income registered $25.4 million, or $1.01 a share, up from $9 million, or 36 cents, in the year-ago quarter. Analysts had expected earnings per share of 28 cents for the latest quarter, according to a survey by FactSet.
Revenue totaled $250.4 million in the latest quarter, up 9.6% from $228.4 million a year earlier. Analysts in the FactSet survey estimated revenue of $234.2 million.
“We successfully executed a quick and safe reopening of the majority of our stores in the quarter, while continuing to lean heavily on our omni platforms to fulfill strong demand for our distinct merchandise offering,” Zumiez Chief Executive Rick Brooks said in a statement.
At the end of the second quarter, Zumiez said, 645, or 89.6%, of its 720 stores were open. Most closed stores were in California and Australia due to government orders. As of Labor Day, Sept. 7, 35 stores, or 4.9% of the store base, were still closed.
“With close to $300 million in cash and no debt on our balance sheet, we are set up well to navigate whatever headwinds arise over the coming quarters,” Brooks said.
As of Aug. 1, the company had cash and current marketable securities of $299.1 million, up from $188.6 million a year earlier.