Stern Agee Raises Shoe Carnival (SCVL) Price Target To $27

Stern Agee analyst Sam Poser maintained his Buy rating for shares of Shoe Carnival, Inc. (Nasdaq: SCVL) and raised the price target to $27.

Poser wrote that a solid execution of strategy by Shoe Carnival's management, along with a beneficial product cycle led to significant growth rates for the company.

He raised his EPS estimates for fiscal year 2010 by 22 cents, up to $1.67 and introduced a 2011 estimate of $1.94 earnings per share.

The Stern Agee analyst wrote, "we are concurrently increasing our price target to $27, implying multiples of 16x and 6x our ’10E EPS and EBITDA, near historical mean levels. Despite the meaningful earnings revision, we’d note that our 2010 estimate is conservative due to our modest 2H SSS assumption of ~2%. SCVL is using controlled aggression to identify and supply appropriate quantities of key items. The company will not lap full toning door penetration until November, boots for both men’s and women’s are positioned for growth and athletic appears to be strengthening. Cost controls should mute SG&A growth (~4%), so expect incremental volumes to be materially accretive."