Piper Jaffray Upgrades Helen of Troy (HELE) to Overweight

Piper Jaffray upgraded Helen of Troy (NASDAQ: HELE) from Neutral to Overweight with a price target of $100.00 (from $71.00) following strong Q4 results with series of catalysts.

Analyst Stephanie Wissink commented, "We are upgrading to Overweight, having paused our thesis a couple of months ago to provide the company the opportunity to cast its view for 2016. Following a strong Q4 period, 2016 guidance was right in line, including a drag from FX and difficult compares, which implies attractive underlying momentum. The internals of the model continue to improve - on core sales improvement in the +LSD, profit growth was double digits. This, coupled with an expanding cost realignment program, expense efficiencies, and a strong bias to acquire higher margin consumable businesses, supports a higher trading multiple. HELE is a stock that should continue to be owned as part of a core durable goods portfolio. We adjust our multiple to 16x on our FY17 EPS, yielding a $100 PT."

The firm raised FY 2016 EPS from $5.55 to $5.80 and FY 2017 EPS from $5.92 to $6.24.

For an analyst ratings summary and ratings history on Helen of Troy click here. For more ratings news on Helen of Troy click here.

Shares of Helen of Troy closed at $79.85 yesterday.

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