Telsey Advisory Group Adjusts Price Target on Designer Brands (DBI) to $8, Maintains Market Perform Rating

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Designer Brands ($NYSE:DBI) Inc. (DBI) is a leading footwear and accessories retailer in North America. Recently, the Telsey Advisory Group has adjusted the price target of Designer Brands Inc. (DBI) to $8 from $12, and retained its Market Perform rating. The Telsey Advisory Group’s new price target reflects the company’s underperformance in the last quarter and is based on their assessment of the company’s financials and outlook. The lowered rating is also due to the impact of the macroeconomic climate and competitive landscape.

However, with the company’s continued focus on product innovation, customer experience, and cost efficiency, it is poised to continue making strides in the long run. Investors should remain vigilant and monitor the stock’s performance before making any decisions regarding their investments.

Market Price

On Monday, DBI’s stock opened at $8.6 and closed at $9.2, an increase of 6.9% from the prior closing price of $8.6. This action by Telsey Advisory Group reflects their belief that DBI will return to their pre-pandemic levels in the near future. DBI previously experienced a decline in business during the pandemic, and now the stock is making a comeback and is showing signs of growth. With the new price target, Telsey Advisory Group is signalling that they expect this upward trend to continue, and that the stock is poised to reach its previous highs. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Designer Brands. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Designer Brands. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Designer Brands. More…

Key Ratios Snapshot

Some of the financial key ratios for Designer Brands are shown below. More…

Analysis

We at GoodWhale recently completed an analysis of DESIGNER BRANDS’ wellbeing. Our Star Chart classified the company as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. This type of company would be attractive to a variety of investors, such as those who are looking for a steady income or who are looking for a stable long-term investment. We concluded that DESIGNER BRANDS is strong in asset management and profitability, and weak in dividend and growth. Its intermediate health score of 6/10, considering its cashflows and debt, means that DESIGNER BRANDS may be able to safely ride out any crisis without the risk of bankruptcy. More…

Peers

Designer Brands Inc. is facing fierce competition in the fashion industry from AMAGASA Co Ltd, Roots Corp, and Boot Barn Holdings Inc. Each of these companies has their own unique approach to the fashion industry, and they are all vying for a share of the market. As a result, Designer Brands Inc. must remain agile and responsive to their competitors in order to maintain success in this highly competitive landscape.

– AMAGASA Co Ltd ($TSE:3070)

KAMAGASA Co Ltd is a Japanese based company that specializes in the production of automotive parts and components. The company has a market cap of 2.39 billion as of 2022, reflecting its strong and steady growth throughout the years. Its Return on Equity (ROE) also stands at -145.5%, indicating that the company is able to generate a significant amount of profits relative to its shareholders’ equity. This is indicative of the company’s ability to generate substantial returns for its investors and shareholders.

– Roots Corp ($TSX:ROOT)

Roots Corp is a Canadian apparel and lifestyle company focused on providing quality clothing and accessories that combine style, comfort and a connection to nature. Its market cap of 110.97M as of 2022 reflects its strong financial performance, with a Return on Equity of 8.66%, which is higher than the average for the apparel and lifestyle industry. The company’s focus on quality and sustainability has enabled it to capture a large consumer base and grow its market share. Additionally, Roots Corp has been able to leverage its brand recognition and create a loyal customer base that continues to support the company.

– Boot Barn Holdings Inc ($NYSE:BOOT)

Boot Barn Holdings Inc is a publicly traded American retailer of western and work-related footwear, apparel, and accessories. The company operates over 300 stores throughout the United States, and its products are also available online. As of 2022, the market cap of Boot Barn Holdings Inc is 1.84 billion dollars. This market cap reflects the company’s strong financial performance and expected future growth. Additionally, Boot Barn Holdings Inc has a Return on Equity (ROE) of 23.87%. This indicates that the company is generating a high rate of return on its equity investments and is an indicator of strong financial health.

Summary

Telsey Advisory Group (TAG) recently adjusted their price target for Designer Brands Inc. (DBI) stock from $12 to $8, but maintained their Market Perform rating. On the same day, DBI stock rose, indicating that investors responded positively to the news. Analysts remain confident in DBI’s potential profitability over the long term, and the revised price target reflects this analysis.

Despite the recent increase in stock price, investors should exercise caution when deciding how to invest in DBI. While TAG’s revised price target may provide direction for current DBI stockholders, it should not be interpreted as a buy recommendation.