Two of the most prominent retailers based in Middle Tennessee are trading down Wednesday morning after negative notes from analysts.
Genesco is off more than 3 percent following the decision by Goldman Sachs analyst Taposh Bari to launch coverage of the shoe and hat seller with a 'sell' rating based on "the absence of positive alpha catalysts." Bari also questions the company's investments in the Lids Locker Room sports gear division and sees the stock (Ticker: GCO) falling to $63 from its $72 Tuesday close.
Dollar General shares (Ticker: DG) also are swimming against the tide this morning after Wells Fargo's Matt Nemer downgraded the discount giant to 'market perform' from 'outperform' because of the risk that a weak economy will eat into the company's sales and margins. He has lowered his 2014 EPS outlook by 5 percent and sees the stock going nowhere from its current level of $57 and change.
Shoe and hat seller Genesco has signed a new revolving debt agreement with a group of banks led by Bank of America. The $400 million facility is a little bit smaller than the previous package signed in 2011 but can be expanded to $600 million and will expire in early 2019.
Avondale Partners analyst Mark Montagna has reiterated his 'market perform' rating on shares of Genesco following the company's encouraging mid-quarter sales update. And while he has lowered his fiscal 2015 earnings estimates by three cents to $2.19, Montagna says "there are a lot of positives beginning to emerge at Lids," the company's main hat brand, as well as easier comparisons in the coming quarters. His price target for Genesco is $70, a little below where the stock (Ticker: GCO) trades now.
Analysts at Salman Partners have lowered their opinion of Louisiana-Pacific to 'hold' from 'buy' and trimmed their target price to $17 from $18.50. Shares of the construction materials manufacturer (Ticker: LPX) closed Wednesday at $18.09 and have climbed slightly over the past three months.
Six-year-old athletic sock manufacturer Swiftwick is making moves to build a national footprint and has dispatched two of its sales managers to set up regional offices in Austin and Denver. The moves comes after Brentwood-based Swiftwick grew by a third in 2013.
“The Swiftwick brand is already strong in Texas and Colorado, where active lifestyles and the ‘do what moves you’ attitude has roots,” said Mark A. Cleveland, CEO and co-founder of Swiftwick. “Because of our strength in these ultra-cool markets, we’re moving employees and resources there to up the intensity.”
New York-based investment management firm Royce & Associates filed papers with the Securities and Exchange Commission Thursday saying it now owns almost 1.6 million shares of local shoe and hat retailer Genesco. That's up from just 272,000 last September and amounts to almost 6.7 percent of the Genesco total. And it makes Royce the fifth firm to hold at least 5 percent of Genesco's common stock.
Mark Montagna at Avondale Partners has raised his price target for shares of Genesco (Ticker: GCO) to $70 from $67 on the heels of the company's third-quarter earnings report last week. Montagna also took his EPS target for this fiscal year up to $5.15 from $5.09 and says his price target is consistent with Genesco's earnings multiple of the past couple of years.