Roth MKM downgrades Tilly’s on lack of comp visibility

Roth MKM downgraded Tilly’s to Neutral from Buy with a price target of $8.50, down from $9.50. The company reported a “sound” Q3 and management continues to execute well in a tough macro backdrop, the analyst tells investors in a research note. However, the firm believes Tilly’s needs better store comps to drive operating leverage to return to profitability. Pending visibility into this, Roth does not expect the stock to sustainably work.