Susquehanna Upgrades Charming Shoppes (CHRS) to Positive
Susquehanna upgrades Charming Shoppes, Inc. (CHRS) from Neutral to Positive with an $8 price target.
The firm cited: cash preservation, lean inventory, 150 store closings, 13% reduction in corporate and field management positions, 2008 capital expenditures are planned more than 40% lower than the prior year, potential sale of the Crosstown Traders missy catalogs, refinancing or sale leaseback of CHRS's corporate offices and Lane Bryant's retail DC, the potential sale of the former Catherines Memphis office and DC, a possible sale of Fashion Bug.
The firm said, "It is important that we emphasize our upgrade does not reflect any change in the consumer environment, nor CHRS's current fundamentals. In fact, we strongly believe management is hunkering down for a fall/holiday season similar to spring. This mindset creates an opportunity to benefit from any reversal of consumer fortunes later this year."
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