UBS Maintains a 'Neutral' on Chico's, Inc. (CHS); Near-Term Momentum, Long-Term Some Uncertainties
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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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UBS maintains a 'Neutral' on Chico's, Inc. (NYSE: CHS) price target raised from $12 to $15.
UBS analyst says, "CHS was a 4Q standout given stronger than expected comps, gross margin and inventory position. EPS upside of $0.04 was the most material it’s been in awhile. We are impressed with QTD comps tracking +7% given a 3-pt tougher compare, though unclear how much is being driven by incremental promotions in light of gross margin guide. While we think FY margin guidance could be conservative, we still have reservations LT regarding the path to a mid-teens margin, the aggressive 9% square footage growth in the name of growth, and whether Soma truly has legs."
"Our 1Q EPS estimate remains $0.30, ‘12E goes to $1.01 from $1.02. We are raising our price target to $15 based on 12x our ‘13 EPS estimate of $1.23 (prev: $12 10x $1.20, below historical median of 14.5x; target multiple increased to reflect greater near-term visibility)."
For an analyst ratings summary and ratings history on Chico's, Inc. click here. For more ratings news on Chico's, Inc. click here.
Shares of Chico's, Inc. closed at $14.94 yesterday.
UBS analyst says, "CHS was a 4Q standout given stronger than expected comps, gross margin and inventory position. EPS upside of $0.04 was the most material it’s been in awhile. We are impressed with QTD comps tracking +7% given a 3-pt tougher compare, though unclear how much is being driven by incremental promotions in light of gross margin guide. While we think FY margin guidance could be conservative, we still have reservations LT regarding the path to a mid-teens margin, the aggressive 9% square footage growth in the name of growth, and whether Soma truly has legs."
"Our 1Q EPS estimate remains $0.30, ‘12E goes to $1.01 from $1.02. We are raising our price target to $15 based on 12x our ‘13 EPS estimate of $1.23 (prev: $12 10x $1.20, below historical median of 14.5x; target multiple increased to reflect greater near-term visibility)."
For an analyst ratings summary and ratings history on Chico's, Inc. click here. For more ratings news on Chico's, Inc. click here.
Shares of Chico's, Inc. closed at $14.94 yesterday.
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