UPDATE - UBS Initiates Coverage on Saks (SKS) with a Neutral; Strategy Improving, But Patience Required

UPDATE - UBS initiates coverage on Saks (NYSE: SKS) with a Neutral. PT $12.

Analyst, Michael Binetti, said, "We believe premium retailers like SKS have the most SSS upside potential in ‘12 as the expanding economy creates new aspirational consumers. SKS premium positioning protects it from the mid-tier share battle caused by JCP’s turnaround strategy. We are forecasting 7% SSS growth & EPS of $0.51 (Street also $0.51). That said, at 21.5x our ‘12E EPS, we believe the stock already reflects EPS upside."

Binetti does say that Saks is doing a lot of things right, but closing underperforming stores will help sales and margins get more in-line with peer group.

To see more ratings on SKS, Click Here

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Raymond James Starts Southern California Bancorp (BCAL) at Outperform
• DA Davidson Starts Comfort Systems USA (FIX) at Buy
• Baird Starts Eaton Corporation (ETN) at Outperform