BofA update shows where active managers are putting money
Investing.com - DA Davidson has reiterated its Buy rating and $2.00 price target on Destination XL Group (NASDAQ:DXLG), the specialty retailer of big and tall men’s clothing. The target represents a 53% upside from the current price of $1.31, though InvestingPro analysis indicates the stock is currently trading near its Fair Value.
The firm noted that DXL Group’s business remains soft as customers continue to prioritize spending in other areas, a trend that has persisted for the past two years. This is reflected in the company’s revenue decline of 10.7% over the last twelve months, with total revenue at $457 million.
Despite significant comparable sales declines, DA Davidson observed that the negative trend is leveling off, with smaller declines throughout the second quarter of 2025 and into early third quarter.
The retailer’s effective cost and inventory management led to better-than-expected EBITDA for the quarter, according to the research firm’s analysis.
DA Davidson expressed support for initiatives being implemented by DXLG’s management team, specifically highlighting the company’s increased focus on value as a sensible strategic direction. Management has been actively buying back shares, according to InvestingPro analysis, demonstrating confidence in the company’s strategy despite current market challenges.
In other recent news, Destination XL Group reported its Q2 2025 financial results, surpassing expectations with an earnings per share (EPS) of $0.0223, while analysts had projected a loss of $0.03 per share. Despite this positive earnings surprise, the company experienced a decline in net sales and comparable sales. These recent developments have drawn attention from investors and analysts alike. The earnings results are crucial, as they provide insights into the company’s financial performance amidst challenging market conditions. While the EPS beat is notable, the drop in sales metrics indicates potential areas of concern for the company. Investors will likely be watching for further updates on how Destination XL Group plans to address these sales challenges.
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