Casual Male Retail "sector perform," target price reduced - update

03/26/08 - RBC Capital Markets

NEW YORK, March 26 (newratings.com) - Analysts at RBC Capital Markets maintain their "sector perform" rating on Casual Male Retail Group Inc (CMRG), while reducing their estimates for the company. The target price has been reduced from $5.50 to $5.00.

In a research note published this morning, the analysts mention that the company has posted its 4Q EPS significantly short of the estimates, with earnings negatively impacted by inventory write-downs and the clearance of non-go-forward products. Despite Casual Male Retail’s recently proposed initiatives, improving the company’s comp trends in the near-term would be challenging, the analysts say. The EPS estimate for 2008 has been reduced from $0.35 to $0.24.