We are reiterating our Buy rating, $10 price target, lowering our FY25 projections and rolling out a return to growth in FY26 after Vera Bradley announced slightly below consensus 4QFY24 results and rolled out initial FY25 guidance which we believe could prove conservative in the second half as the company launches the new Vera Bradley and Pura Vida under operation New Day in mid-July. As such, and with VRA registering cash per share of over $2.50 (with no debt) and tangible book value per share of almost $8.20, we remain upbeat, especially for investors who have the patience to look beyond a set-up-driven (and potentially somewhat messy) 1HFY25 to what we believe will be the start of a compelling turn in 2HFY25 and beyond. We reiterate our Buy rating and $10 price target for VRA.
13 Mar 2024
VRA: 4Q Review: Being Conservative in Front of New Vera; Reiterate Buy, $10 PT
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VRA: 4Q Review: Being Conservative in Front of New Vera; Reiterate Buy, $10 PT
Tapestry Inc (TPR:NYSE), 0 | Tapestry, Inc. (TPR:NYS), 0 | VERA BRADLEY (VRA:NYSE), 0 | Vera Bradley, Inc. (VRA:NAS), 0
- Published:
13 Mar 2024 -
Author:
Eric Beder -
Pages:
8
We are reiterating our Buy rating, $10 price target, lowering our FY25 projections and rolling out a return to growth in FY26 after Vera Bradley announced slightly below consensus 4QFY24 results and rolled out initial FY25 guidance which we believe could prove conservative in the second half as the company launches the new Vera Bradley and Pura Vida under operation New Day in mid-July. As such, and with VRA registering cash per share of over $2.50 (with no debt) and tangible book value per share of almost $8.20, we remain upbeat, especially for investors who have the patience to look beyond a set-up-driven (and potentially somewhat messy) 1HFY25 to what we believe will be the start of a compelling turn in 2HFY25 and beyond. We reiterate our Buy rating and $10 price target for VRA.