Feshbach Brothers Investor Services Inc. Initiates Coverage of Gargoyles Performance Eyewear -- GOYL-$8 1/2 -- with a "BUY" rating; Analyst Sets Near-Term Price Target at $11.50 and a Year-end Price Target at $21.50; A 14-Page Report has Been Released.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--March 12, 1997--Feshbach Brothers' Analyst Clayton Philip Fisher Philip Fisher may refer to:
medieval European church waterspouts; made in form of grotesque creatures. [Architecture: NCE, 1046] See : Ugliness Performance Eyewear today with a "BUY" rating. A 14-page report has been released. With the recent sluggishness at Sunglass sun·glass n. 1. A convex lens used to focus the sun's rays and produce heat, especially for ignition. 2. sunglasses Eyeglasses with tinted or polarizing lenses to protect the eyes from the sun's glare. Hut (RAYS), Gargoyles' stock has fallen to very attractive levels. On March 10, Gargoyles announced an agreement to acquire Sungold I-Wear, which has the exclusive rights to manufacture sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses under the Stussy and Anarchy ANARCHY. The absence of all political government; by extension, it signifies confusion in government. brand names. The acquisition will allow Gargoyles to leverage its existing operations, while adding popular brands to the Gargoyles umbrella, which target the youth market, a new consumer group for the company. The acquisition is expected to be accretive immediately. In addition, Gargoyles is expected to add more lines in 1997 than previously announced. Not including Sungold, S.K.U.'s should increase by 30 percent in 1997 and Gargoyles' account base should increase by at least 25 percent. Fisher said, "With its strong growth prospects, significant opportunity to consolidate, strong financial condition, excellent management team and rapidly expanding margins, Gargoyles' stock is a steal at current levels." Gargoyles' stock trades at 1.55x sales as compared to its closest publicly traded comparable, Oakley, which trades at 3.25x sales. Fisher continued, "Gargoyles' stock would be cheap at a PSR PSR Pulsar PSR Poster PSR Physicians for Social Responsibility PSR Psychosocial Rehabilitation PSR Pacific School of Religion PSR Policy and Survey Research PSR Project Study Report PSR Pre-Sentence Report PSR Pressure-State-Response PSR Puget Sound Region (Price to Sales Ratio) of 2.15 (representing a 33 percent discount to Oakley's PSR) with its rapidly expanding revenues and margins. We are therefore establishing a near-term price target of $11.50 per share, or 2.15x Gargoyles' 1996 revenues (including Sungold). Our year-end price target is $21.50, or 35x our 1997 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. estimate of $.62." Feshbach Brothers' 1998 EPS estimate is $1.12. Feshbach Brothers Investor Services Inc. is a research boutique providing a high level of investment banking and brokerage services to institutions and corporations. -0- Note to Editors: The information contained herein is based upon souces and data, which we believe to be reliable, but is not guranteed by us and is not considered to be all inclusive. Feshbach Brothers Investor Services Inc. and/or its affiliates, individual stockholders and/or members of their families may have a position in the securities mentioned and may make purchases and/or sales from time to time in the open market or otherwise. Opinions expressed are our present opinions only and are subject to change without notice. CONTACT: Feshbach Brothers Investors Services Inc. Damon Alessendrini, 415/853-0811 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion