Brean Capital Reiterates Buy Following Destination XL Group (DXLG) Q1 Results

Brean Capital reiterates a Buy rating and $8.00 price target on Destination XL Group (NASDAQ: DXLG) following Q1. DXLG reported non-GAAP EPS of ($0.01), beating Street estimate of ($0.04). FY15 guidance was tightened and is now ($0.12) to ($0.16).

Analyst Liz Pierce commented, "DXLG reported a solid beat to Q1 on non-GAAP EPS of ($0.01), beating both our/Street estimate of ($0.04), which we believe is very impressive given that the B&T customer can be so sensitive to weather. In our view, DXLG is the leader in the men’s big and tall (B&T) sector as the innovative Destination
XL brand has dramatically and positively reshaped the competitive landscape. Importantly, there are ~40 million men in the B&T market with 65% of those men part of the end-of the-rack category, which we believe is the sweet spot of the B&T market as this customer does not consider himself a B&T customer. Finally, we believe FY15 is the tipping point for DXLG as there will be more DXL stores than CM stores enabling the real power of the DLX model to shine through. Accordingly, we reiterate our Buy rating and our $8 TP."

For an analyst ratings summary and ratings history on Destination XL Group click here. For more ratings news on Destination XL Group click here.

Shares of Destination XL Group closed at $4.53 yesterday.

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