FBR Capital Maintains an 'Outperform' on Chico's, Inc. (CHS); We Are Aggressive Buyers on Weakness; Raising PT
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Price: $7.59 --0%
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Chico's, Inc. (NYSE: CHS), raises PT from $15 to $18.
FBR analyst says, "We believe the sell-off in CHS shares is an overreaction. Our sense is that expectations heading into the quarter had gotten too high. However, if we step back and look at the numbers, it was a very strong quarter, with a 7.7% comp split about evenly between the two core divisions, significant operating margin expansion, and share repurchase. Going forward, compares are easier, and the company is up against a negative comp in July. The retailer ran out of inventory last year, and it is in a strong inventory position this year. Plus, management is steadily buying back stock. We believe the market right now is comprised of "haves" and "have nots"— those that are comping and those that are not. The problem is that many of the strong sales momentum stories are expensive. Chico’s is a relatively inexpensive comp momentum story. We would use weakness as a buying opportunity."
"We are raising our 2Q11 EPS estimate to $0.23 from $0.22 and our CY11 EPS estimate to $0.91 from $0.88. We are taking our CY12 EPS estimate to $1.18 from $1.15."
For more ratings news on Chicos, Inc. click here and for the rating history of Chicos, Inc. click here.
Shares of Chicos, Inc. closed at $15.21 yesterday.
FBR analyst says, "We believe the sell-off in CHS shares is an overreaction. Our sense is that expectations heading into the quarter had gotten too high. However, if we step back and look at the numbers, it was a very strong quarter, with a 7.7% comp split about evenly between the two core divisions, significant operating margin expansion, and share repurchase. Going forward, compares are easier, and the company is up against a negative comp in July. The retailer ran out of inventory last year, and it is in a strong inventory position this year. Plus, management is steadily buying back stock. We believe the market right now is comprised of "haves" and "have nots"— those that are comping and those that are not. The problem is that many of the strong sales momentum stories are expensive. Chico’s is a relatively inexpensive comp momentum story. We would use weakness as a buying opportunity."
"We are raising our 2Q11 EPS estimate to $0.23 from $0.22 and our CY11 EPS estimate to $0.91 from $0.88. We are taking our CY12 EPS estimate to $1.18 from $1.15."
For more ratings news on Chicos, Inc. click here and for the rating history of Chicos, Inc. click here.
Shares of Chicos, Inc. closed at $15.21 yesterday.
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