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Sept 22 J.P. Morgan Securities downgraded
Buckle Inc (BKE.N) to "neutral" from "overweight," saying the
apparel and footwear retailer's stock has doubled this year and
is trading close to an all time high.
Shares of the company, which closed at $61.55 Friday, have
more than doubled since touching their 52-week low in January.
JP Morgan said Buckle is still expected to deliver some of
the best comparables in retail with upside to sell side
earnings estimates, but the multiple could be capped given
limited square footage growth and higher operating margins.
The brokerage said Buckle is one of the few retailers "out
there with a fashion trend that is working", JP Morgan said.
Even assuming this trend lasts longer, the brokerage said
it was concerned about other retailers like J.C. Penney Co Inc
(JCP.N), Macy's Inc (M.N) and Dillard's Inc (DDS.N) starting to
carry a similar mix of brands in some of Buckle's markets.
Kearney, Nebraska-based Buckle currently operates 382
retail stores in 39 states.
(Reporting by Dilipp S. Nag in Bangalore; Editing by Jarshad