Designer Brands price target raised to $6 from $5.50 at UBS

UBS raised the firm’s price target on Designer Brands (DBI) to $6 from $5.50 and keeps a Neutral rating on the shares. Designer Brands is one of the largest fashion footwear retailers in the U.S., but UBS sees limited long-term EPS growth potential given its DSW banner is relatively mature and faces increasing competition from other retail channels and Designer Brands’ high skew towards seasonal footwear should continue weighing on comp sales growth, the analyst tells investors in a research note. The firm forecasts a -6% 6-yr. EPS CAGR and models long-term EPS 15% below pre-pandemic levels.