Deutsche Bank Starts Party City (PRTY) at Buy

Deutsche Bank initiated coverage on Party City (NYSE: PRTY) with a Buy rating and a price target of $25.

Analyst Mike Baker said, "We view the company’s vertically integrated business model as its primary investment positive because it drives the majority of the margin benefit on both the retail and wholesale sides. The ultimate benefit occurs when PRTY is able to manufacture, wholesale and sell goods through its Party City stores. Here PRTY realizes three profit pools – called “triples” – rather than the typical single profit pool. Triples currently account for 22 percent of retail sales and we believe PRTY has the opportunity and strategy to increase this penetration to 40 percent to 45 percent over time as it acquires additional manufacturing capacity and grows its own Share of Shelf. Initiating coverage with a Buy."

For an analyst ratings summary and ratings history on Party City click here. For more ratings news on Party City click here.

Shares of Party City closed at $21.80 yesterday.

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