It may be time for shareholders of Pier 1 Imports to pop the cork on that champagne they have been saving. The less-than-profitable home-furnishings seller, which has been beset by rapid sales declines and a shrinking margin, was given a stock upgrade by Goldman Sachs Group on June 12th.
Adrianne Shapira, a top Goldman analyst, and her group upgraded Pier 1 from neutral to buy, and added their stock onto their Americas Conviction List.
Goldman also raised the price target on their stock from $7.50 to $10.50.
Any shred of hope is more than welcome at the Fort Worth, Texas-based company. Recent outlooks have been highly discouraging. The company showed a 14 cents-per-share loss for the quarter ending in February, far worse than their loss of only 4 cents from a year previous.
Pier 1 is working to change its mixture of merchandise to compete better, but will be forced to close many stores and cut staff members.