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Dillard’s Stock Tumbles After UBS Sees 44% Downside -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — Fashion retailer Dillard’s (NYSE:) has seen its shares fall in reaction to the news that UBS has initiated the stock with a sell rating, setting a price target 44% below the current share price.

After Dillard shares closed Monday at $339.92, analyst Mauricio Serna established a price target of $190. The current price of Dillard’s shares is $275.64, down about 19%.

We believe the DDS market is underestimating the amount of pressure it faces. Earnings due to tough FY22 compares and macro headwinds,” said Serna. 

According to the analyst, Dillard’s will lose market share in America against all other retailers. 2021 marks an earnings peak, and Serna predicts a 22% decline in the EPS compound annual rate for the next four year.

Our FY22 EPS estimate falls -28% short of consensus. The analyst explained that we expect sentiment to be impacted by EPS missed after FY21.

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