Destination XL price target lowered to $2.50 from $3 at DA Davidson

DA Davidson lowered the firm’s price target on Destination XL (DXLG) to $2.50 from $3 and keeps a Buy rating on the shares. DXLG is performing admirably in a “challenged big & tall subsector”, at least holding if not gaining share while controlling costs and margins enough to generate positive free cash flow in 2024, the analyst tells investors in a research note. Sharper value positioning, as well as some intriguing technology enhancements, have had positive test results, and the company’s business may be “close to bottoming”, the firm adds.