Analyst Gets Aggressive on Apparel Manufacturers: Raises Targets on GIII, MFB, PERY, WRC

Brean Murray said it is getting more aggressive on the entire apparel manufacturing sector today. The firm believes that the group is "among the best positioned to benefit from a turn in consumer sentiment, as the 'perfect storm' of Q4FY09 turns to clearer skies..."

Brean Murray sees a "materially improved" inventory picture during this holiday season, and also notes that bankruptcies should not be a material issue (in comparison to last year's numerous bankruptcies). The firm points out that valuations for the apparel players have remained below the broad retail sector.

The firm made the following changes in the group today:

• Phillips-Van Heusen (NYSE: PVH) - initiated coverage with a Buy rating and $51 price target.
  
• G-III Apparel Group (Nasdaq: GIII) - raised its price target from $17 to $18, maintaining a Buy.
  
• Maidenform Brands (NYSE: MFB) - raised price target from $18 to $19.50, maintaining a Buy.
  
• Perry Ellis (Nasdaq: PERY) - raised price target from $15 to $18, maintaining a Buy. The firm also raised its FY11 EPS estimate to $1.20.
  
• Warnaco Group (NYSE: WRC) - raised its price target from $42 to $51, maintaining a Buy.

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