NEW YORK (TheStreet) -- Shares of Pier 1 Imports (PIR) - Get Report were jumping 5.85% to $4.52 in mid-morning trading on Thursday after the home goods retailer reported an in-line loss for the fiscal 2017 second quarter.
After yesterday's closing bell, Pier 1 posted a loss of 5 cents per share, in line with Wall Street estimates.
Revenue fell 6.7% to $405.8 million year-over-year and was below analysts projected $407 million.
Jefferies lifted Pier 1's price target to $4.50 from $4.25 citing its in line second quarter results. The firm maintained its "hold" rating on the company.
Pier 1's guidance for the second half "looks achievable," but the company needs to improve its "everyday value proposition" in the more competitive retail market, the firm added.
Jefferies said it was "encouraged" by Pier 1 management's announcement that it intends to initiate a 5-year supply chain cost reduction strategy, as well as its plan to rationalize real estate decisions by negotiating favorable rent agreements.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Pier 1 Imports as a Hold with a ratings score of C. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: PIR