Hudson's Bay Company price target raised to $54.00 $HBC

Hudson's Bay Company is a Canada-based retailer company. The Company is a North American retailer offering a selection of branded merchandise in Canada and the United States. The Company operates three retail banners: Saks Fifth Avenue, Lord & Taylor, Hudson’s Bay and Saks Fifth Avenue OFF 5TH, which offers assortment of apparel, accessories, shoes, beauty and home merchandise. The Company also operates Home Outfitters, which is a kitchen, bed and bath superstore with 69 locations across Canada.

The Hudson’s Bay is a department store with 90 full-line locations across Canada. The Lord & Taylor operates 49 full-line locations primarily in the northeastern and mid-Atlantic United States. The Saks Fifth Avenue is one of the retailers, which consists of 39 stores and five international licensed stores in United States. The Saks Fifth Avenue OFF 5TH offers value-oriented merchandise through 72 stores in United States.

In the last quarter the EPS was 0.61 cents, if this trend continues, EPS for the year will be close to $2.40/share. This dramatically lowers the P/E to around 10-13 instead of a P/E of 31.00 as of today. As well, continued strong sales in the US from the Saks and Off 5th brands are also contributing to the HBC balance sheet.