UBS Maintains a 'Neutral' on Chico's, Inc. (CHS); Not Out of the Woods on Inventory
Tweet
Share
E-mailGet Alerts CHS Hot Sheet
Price: $7.59 --0%
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Join SI Premium – FREE
UBS maintains a 'Neutral' on Chico's, Inc. (NYSE: CHS) price target lowered from $14 to $11.
UBS analyst says, "We view CHS as best-positioned within the boomer space with multiple long-term sales & margin drivers. After today’s stock move, it is trading at the lowest P/E and EV/EBITDA multiples in our group. However, given this year’s $1.00 EPS goal will likely be missed, we don’t think the stock will run away until there’s greater confidence of entering Q1 with clean inventories. We remain on the sidelines and look for a clearer roadmap to $1.00 & $1.50 EPS."
"In our view, CHS (in particular, CEO Dyer) has a greater appetite to expose itself to inventory risk vs most peers; began committing to big increases very early in 2011 as some others adjusted 2H down in spring. While WHBM continues to perform well, a broader slowdown in spending would leave it exposed. Q1 is a key quarter for CHS (31% of FY’10 EPS), so there is pressure to end Q4 cleanly."
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 $9.94 yesterday.
UBS analyst says, "We view CHS as best-positioned within the boomer space with multiple long-term sales & margin drivers. After today’s stock move, it is trading at the lowest P/E and EV/EBITDA multiples in our group. However, given this year’s $1.00 EPS goal will likely be missed, we don’t think the stock will run away until there’s greater confidence of entering Q1 with clean inventories. We remain on the sidelines and look for a clearer roadmap to $1.00 & $1.50 EPS."
"In our view, CHS (in particular, CEO Dyer) has a greater appetite to expose itself to inventory risk vs most peers; began committing to big increases very early in 2011 as some others adjusted 2H down in spring. While WHBM continues to perform well, a broader slowdown in spending would leave it exposed. Q1 is a key quarter for CHS (31% of FY’10 EPS), so there is pressure to end Q4 cleanly."
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 $9.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Upgrades Husqvarna AB (HUSQB:SS) to Buy
- First BanCorp (FBP) PT Raised to $21 at Keefe, Bruyette & Woods
- Meta Platforms Inc. (META) PT Lowered to $575 at UBS, 'shares are offering a 3-to-1 skew'
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
