2023-05-11 11:46:31 ET
PLBY Group ( NASDAQ: PLBY ) fell sharply on Thursday a day after missing estimates with its Q1 earnings report .
Roth MKM cut its rating on PLBY Group ( PLBY ) to Neutral from Buy following the Q1 earnings report and game-changing announcement on the exploration of strategic alternatives for Honey Birdette. PLBY also disclosed that it plans to license out its Playboy.com business starting in June and is pursuing strategic alternatives for Lovers.
Analyst George Kelly said the firm is increasingly concerned about businesses previously viewed as "anchors of value," including Honey Birdette and the core license business, even with management called smart to monetize non-core assets and focus on debt paydown.
"These potential divestitures, when coupled with PLBY's art collection, could be utilized to pay down debt completely."
However, Kelly and team turned cautious on PLBY with so many variables in flux and questions on valuation. Roth MKM set a new price target on PLBY of $2.
Shares of PLBY Group ( PLBY ) were down 13.17% at 11:44 a.m. on Thursday to $1.62 vs. the 52-week trading range of $1.55 to $10.35.
More on PLBY Group:
- Check out the PLBY earnings call transcript
- Read breakdowns on PLBY Group from Seeking Alpha analysts
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
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PLBY Group slides after earnings miss, Roth MKM downgrade