UPDATE: Sterne Agee CRT Upgrades Genesco (GCO) to Buy

(Updated - October 13, 2015 10:31 AM EDT)

Sterne Agee CRT upgraded Genesco (NYSE: GCO) from Neutral to Buy with a price target of $72. Analyst Sam Poser said Lid's Group appears to have "hit the bottom."

"Following meetings with management last week, we are confident that the momentum at Journeys will continue. More importantly, we are comfortable that the Lid's Group has hit the bottom," said Poser.

"Few structural changes are likely until calendar '17; management's decision to virtually halt new store openings until the business is righted is a good one. In the near term, there are likely to be some margin opportunities due to a favorable field in the Major League Baseball (MLB) playoffs. There are 5 teams in this year that are favorable to Lid's versus 2 last year," continued the analyst.

Poser added, "We are raising our FY16/FY17 EPS estimates from $4.70/$5.10 to $4.81/ $5.14. GCO is currently trading at a PE of 11.7X and a EV/EBITDA of 5.0X our FY17 estimates."

For an analyst ratings summary and ratings history on Genesco click here. For more ratings news on Genesco click here.

Shares of Genesco closed at $59.94 yesterday.

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