03:55 PM EDT, 06/13/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $81, up $4, is 8x our FY 25 (Jan.) EPS view of $10.14 (up $0.55, FY 26 up $0.45 to $10.72), a discount to the five-year forward P/E average of 9.1x. FQ1 (May) adj-EPS of $1.11 (-37% Y/Y) beat by $0.11 on revenue of $1.5B (-9.4% Y/Y), in line with consensus. Same-store sales (SSS) were -8.9% (North America - 9.2%, International -3.2%). Transactions made up the majority of the SSS decline, while ATV made up a low-single-digit percentage. FQ1 had a sluggish start in February but recovered in subsequent months, leaving SIG confident in reaching SSS growth in 2H. Gross margin was flat at 37.9% while SG&A, mainly attributable to advertising, jumped 230 bps to 34.1%, leaving adj-EBIT margin at 3.8% (-260 bps Y/Y). EPS guidance was unchanged at $9.90-$11.52. We expect pressured wallets to keep engagement growth at the bottom of guide (5%-10%) and anticipate ATV to remain pressured for those who do transact. Guidance assumes stable attachment rates, which we view as a risk. We remain at Sell.