The Buckle Started as a “Sell” at Goldman Sachs (BKE)
By Dividend.com StaffNovember 12th, 2009
Clothing retailer The Buckle, Inc. (BKE) saw its coverage initiated as a “Sell” on Thursday by analysts at Goldman Sachs.
The analyst also set a $27 downside price target on the stock, which had closed on Wednesday at $30.29.
Goldman said that it’s noticed some “red flags” lately that suggest a downturn for the company, and noted that current consensus eatimates and stock price do not truly reflect BKE’s near-term earnings risk and lack of long-term growth prospects.
The Buckle shares fell $1.14, or -3.8%, in premarket trading Thursday.
The Bottom LineWe have avoided shares of BKE since our early June coverage began last year, when the stock was trading at $31.08. The company has a 2.64% dividend yield, based on last night’s closing stock price of $30.29. The stock has technical support in the $25-26 price area. If the shares can firm up, we see overhead resistance around the $35 price levels. We would remain on the sidelines for now.
The Buckle, Inc. (BKE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
By Dividend.com StaffNovember 12th, 2009
Clothing retailer The Buckle, Inc. (BKE) saw its coverage initiated as a “Sell” on Thursday by analysts at Goldman Sachs.
The analyst also set a $27 downside price target on the stock, which had closed on Wednesday at $30.29.
Goldman said that it’s noticed some “red flags” lately that suggest a downturn for the company, and noted that current consensus eatimates and stock price do not truly reflect BKE’s near-term earnings risk and lack of long-term growth prospects.
The Buckle shares fell $1.14, or -3.8%, in premarket trading Thursday.
The Bottom LineWe have avoided shares of BKE since our early June coverage began last year, when the stock was trading at $31.08. The company has a 2.64% dividend yield, based on last night’s closing stock price of $30.29. The stock has technical support in the $25-26 price area. If the shares can firm up, we see overhead resistance around the $35 price levels. We would remain on the sidelines for now.
The Buckle, Inc. (BKE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
Im posting this article so everyone can see the severity of what is happening. Buckle is a great place to shop , especially for all of your denim needs and BKE is the brand to get. Stocks and numbers are falling big time, and we need to help get them back up. I love this brand and I highly recommend it. So lets get it together people, get into Buckle right away!
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