SAN FRANCISCO, May 18 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior specialty
retailing analyst Janet Joseph Kloppenburg today reiterated her Buy rating and
raised estimates on Hot Topic (Nasdaq: HOTT), after the company reported
above-expected first quarter fiscal 1999 earnings per share results.
Hot Topic, headquartered in Pomona, Calif., is a rapidly growing specialty
retailer of music-licensed and music-influenced apparel, accessories and gift
items for young men and women.
"We are reiterating our Buy rating on Hot Topic as the company reported
first quarter fiscal 1999 earnings per share of $0.13, versus $0.01 in the
previous year's quarter. Given the strong business trends, we are raising our
second quarter fiscal 1999 earnings per share estimate to $0.11, from $0.07,
versus $0.07 in the previous year's quarter," said Kloppenburg. "In addition,
we are raising our earnings per share estimates from $1.64 to $1.75 for fiscal
1999, versus $1.21 in fiscal 1998, and from $2.03 to $2.15 for fiscal 2000,
representing 45 percent and 25 percent earnings per share growth."
"With the stock trading at 9.8 times our fiscal 2000 estimate, we continue
to recommend purchase of the stock. We believe the shares are significantly
undervalued and do not reflect the robust sales and earnings growth
demonstrated in first quarter fiscal 1999 or the company's strong growth
prospects, with only 168 stores currently," said Kloppenburg.
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment
banking firm focused on growth companies. The firm's 55 equity and high yield
research analysts cover more than 600 companies. Additional information is
available upon request.
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted. In addition, opinions and estimates are
subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks." BancBoston Robertson Stephens from time
to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies. This information is not used in the preparation of
the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report.
BancBoston Robertson Stephens, its managing directors, its affiliates, and/or
its employees may have an interest in the securities of the issue(s) described
and may make purchases or sales while this report is in circulation.
BancBoston Robertson Stephens International Ltd. is regulated by the
Securities and Futures Authority in the United Kingdom. This publication is
not meant for private customers. The securities discussed herein are not FDIC
insured, are not deposits or other obligations or guarantees of BankBoston
N.A., and are subject to investment risk, including possible loss of any
principal amount invested.
SOURCE BancBoston Robertson Stephens
/CONTACT: press only, Elizabeth Keys, 202-326-1763, for BancBostonRobertson/
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/Web site: rsco.com
May-18-1999 13:58 GMT
Symbols:
US;HOTT
Source PRN PR NewsWire
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