Tilly’s price target lowered to $2.50 from $5 at Roth MKM

Roth MKM lowered the firm’s price target on Tilly’s (TLYS) to $2.50 from $5 and keeps a Neutral rating on the shares. The company’s Q4 results were soft, with sales below guidance from early-December, and sustained y/y margin erosion from operating deleverage on shrinking revenue, the analyst tells investors in a research note. Q1 guidance suggests a sequentially better-but-still-negative sales comp, and while operating profit may be finding a trough, it remains deeply negative, the firm adds.