iMedia Brands price target lowered to $2 from $3 at B. Riley

B. Riley lowered the firm’s price target on iMedia Brands to $2 from $3 and keeps a Buy rating on the shares. The company reported Q4 results and provided Q1 guidance that both came in well below expectations as balance reductions required by the asset-based lender pressured working capital and inventory mix throughout both periods, the analyst tells investors in a research note. However, with multiple financing transactions now completed and another $20M in expense reductions put into place, iMedia has significantly improved its balance sheet position and right-sized its cost structure into more normalized sales patterns in the second half of 2023, contends the firm.