Susquehanna Maintains a 'Positive' rating on Charming Shoppes (CHRS); Doubles Price Target

June 15, 2009 10:29 AM EDT

Susquehanna maintains a 'Positive' rating on Charming Shoppes (Nasdaq: CHRS), raises price target to $6 from $3.

Susquehanna analyst says, "CHRS has delivered on several defensive fronts, including right-sizing its operating structure, reducing inventories, and exiting non-core businesses. Under the direction of the newly hired CEO, CHRS is taking a more offensive point of view to capitalize on its dominant position within the plus-size apparel and accessory market. Management has identified five key priorities to maximize future earnings power, including: 1) a greater focus on the consumer; 2) stabilizing and growing profitable revenue; 3) increasing EBITDA; 4) generating strong cash flow; and 5) employee empowerment and accountability. This five-point strategy is directed at driving profitable sales, with a clear objective of reinvigorating revenue growth by way of a more compelling balance of fashion and basics rooted in value. Although different for each brand, the coordinated efforts should create a better design and buying process, which will be supported by an integrated marketing effort carrying the voice of each brand and seasonal positioning."

To see more analyst ratings on CHRS Click Here.

Charming Shoppes, Inc. is a multi-brand, specialty apparel retailer with a market share in women’s plus-size specialty apparel.

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