Will This Price Target Increase Help Dillard's (DDS) Stock Today?

NEW YORK (TheStreet) -- Dillard's (DDS) stock has had its price target increased to $105 from $93, Credit Suisse said Monday. The firm said the revision was dependent upon the company's continued share repurchases. 

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Separately, TheStreet Ratings team rates DILLARDS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate DILLARDS INC (DDS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 12.8%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 40.88% is the gross profit margin for DILLARDS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.03% is above that of the industry average.
  • Net operating cash flow has increased to $161.90 million or 18.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -21.85%.
  • DILLARDS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DILLARDS INC increased its bottom line by earning $7.13 versus $6.89 in the prior year. This year, the market expects an improvement in earnings ($7.80 versus $7.13).
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