99 Cents Only Stores "strong buy"

08/14/07 - Wedbush Morgan Securities

NEW YORK, August 14 (newratings.com) - Analyst Joan Storms of Wedbush Morgan maintains her "strong buy" rating on 99 Cents Only Stores (NDN). The 12-month target price is set to $19.

In a research note published this morning, the analyst mentions that the company has posted its 2Q EPS in-line with the estimates and marginally short of the consensus, despite a tax benefit, due to higher-than-expected operating expenses. 99 Cents Only Stores’ gross margins expanded by 100bps and total sales grew by 11.1% in the quarter, the analyst says. 99 Cents Only Stores’ sales momentum remains intact and the company’s profits are expected to improve in 2H08, Wedbush Morgan adds.