ZUMZ - Zumiez lands higher price target from Pivotal

Pivotal Research Group hikes its price target on Zumiez (ZUMZ) to $49 from $45 ahead of the retailer's earnings report on March 11. Analyst Mitch Kummetz: "For the balance of 4Q20, all evidence suggests that SSS were better than the first 10 weeks, based on the commentary from other retailers. On the other hand, for the last three weeks of 4Q20, we suspect that sales growth was not as strong as SSS might indicate, given a bigger drag from closed stores. For the quarter, we're also anticipating healthy margins. First, 4Q20 was a better promotional environment that last year. Second, as sales were better than plan, we anticipate robust flow-through on the incremental revenue." Kummetz and team note that Zumiez has a long history of one thing trending up while something else trends down, and expects that to be the case for FY21. "We've covered ZUMZ for a long time

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Zumiez lands higher price target from Pivotal