MKM Partners Upgrades Citi Trends (CTRN) to Buy

November 20, 2012 1:56 PM EST Send to a Friend
Get Alerts CTRN Hot Sheet
Price: $23.26 -0.6%

Rating Summary:
    4 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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MKM Partners upgraded Citi Trends (NASDAQ: CTRN) from Neutral to Buy with a price target of $18.00 (from $11.00).

The firm comments, "The print was better than expected and looks to us like a fundamental inflection point. While the stock is trading up 10% intraday, we see much more upside potential than downside risk given: (1) valuation— CTRN is still trading only in line with its $13.37 book value; (2) the strong balance sheet—CTRN has about $3.80 per share in cash and investments and no debt; and (3) the potential for sustained positive comps and substantial margin/EPS opportunities off a very depressed base. Our 12-month price target of $18 (up from $11) is 6.5x our 2013E EBITDA per share of $2.75."

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

Shares of Citi Trends closed at $12.17 yesterday.




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