Brean Capital Reiterates Buy Following Cherokee's (CHKE) Q1 Results

Brean Capital reiterates a Buy rating and $28.00 price target on Cherokee Inc. (NASDAQ: CHKE) following the CHKE's Q1 report. CHKE reported earnings of
$0.41, exceeding Streets estimate of $0.36.

Analyst Liz Pierce commented, "Given the solid start to FY16 combined with several incremental product launches, FY16 could turn out to be a much better year than we anticipated. Moreover, not only do we believe these global launches highlight the power of the 360 degree model but also, we believe they put the company on the global stage and as such, position it for even greater growth. Finally, we continue to believe the brand management/license model remains a compelling investment in the consumer space given minimum revenue guarantees and no inventory risk. Accordingly, we maintain our Buy rating and our $28 TP; our $28 TP price is based on a multiple of 20x our FY17 EPS estimate of $1.40 and a PEG ratio of 1x."

For an analyst ratings summary and ratings history on Cherokee Inc. click here. For more ratings news on Cherokee Inc. click here.

Shares of Cherokee Inc. closed at $23.59 yesterday.

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