Baird upgrades Duluth on increased confidence in transformation

Baird analyst Jonathan Komp last night upgraded Duluth Holdings (DLTH) to Outperform from Neutral with a price target of $7, up from $2. The company’s Q2 results were much stronger than expected due to actions to reduce promotions, raise average unit retails, and improved profitability, the analyst tells investors in a research note. The firm says the quarter “materially increases” its confidence in Duluth’s transformation. The stock can revert to more normalized valuation metrics which would bring “further substantial” appreciation, contends Baird.