Topps is on the right track according to one Wall Street advisor.
Analyst Jeffrey Blaeser of Morgan Joseph initiatives coverage of Topps Company Inc (ticker: TOPP) with a "buy" rating. The target price is set to $11.
Blaeser says Topps has "revamped its organizational structure and the new hires, who have wide industry experience, are expected to rejuvenate the company’s core merchandise sales, cut costs and initiate new product development."
Blaeser believes the impact of Topps’ efficiency programs is expected to materialize in fiscal year 2008. Since the company has a zero-debt position, it has been using its free cash flows to pay dividend and buyback shares.
Blaeser, says, "Topps provides a portfolio of well known brand names with strong customer appeal. Topps has revamped its organizational structure to promote competition, profitability, and innovation. The process of putting the company up for bid has ended, but speculation continues. Should another company offer 2x-to-3x sales, we believe management would seriously consider selling one or both of its businesses."
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