Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>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.</li><li>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.</li><li>We reiterate our Buy rating and $10 price target for VRA.</li></ul>

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.

VRA: 4Q Review: Being Conservative in Front of New Vera; Reiterate Buy, $10 PT