Street Watchdog Research Rates Ascena Retail Group (ASNA) Buy, $12.60 PT

Street Watchdog Research rates Ascena Retail Group, Inc., (NASDAQ: ASNA) a Buy with a $12.60 price target.

The group commented, "While we don’t foresee blowout earnings per share from continuing operations of $0.99 as in FY2013, by assessing the company’s financials from 2013 to 2016, as well as modeling pro forma numbers for the remainder of this fiscal year and the next, we are looking for a modest EPS figure of $0.38 for FY2017. For FY2018 which begins at the end of July, we are a bit more optimistic and see positive revenue growth, expanded margins, and a higher EPS. Consequently, we are forecasting FY2018 non-GAAP EPS of $0.70. At a modest forward PE of 18, we impute a fair price of $12.60 for Ascena Retail based upon our estimates for 2018. As such, we believe the company is significantly undervalued at the current trading range."

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