Zacks Investment Research upgraded shares of Kirkland's Inc (KIRK) from UNDERPERFORM to NEUTRAL on December 03, 2012, with a target price of $9.50.
We are upgrading our recommendation on Kirkland's to Neutral from an Underperform as it delivered a narrower than expected loss in the third quarter. Kirkland's third quarter 2012 loss of $0.02 per share, which was narrower than the Zacks Consensus Estimate as well as the company guidance. However, earnings, total revenue, comparable store sales and margins declined from year ago level. Moreover, following the lukewarm results in the first three quarters of the year the company reduced its earnings outlook for the full year. However, the fourth quarter is traditionally the strongest for the company and accounts for almost 80% of the company's earnings every year due to the holiday season. Moreover, Kirkland has bright long term prospects as it improves its brands and merchandising process, expands its e-commerce business and works on some reformative measures like new marketing strategies and technological enhancements to boost its earnings.
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