Wedbush Reiterates an 'Outperform' on Ann Inc. (ANN); Healthy Trends Equal Strong Q2 Beat and Guide
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Price: $44.89 --0%
Rating Summary:
4 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
4 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Wedbush reiterates an 'Outperform' on Ann Inc. (NYSE: ANN) price target of $37.00 (from $32.00).
Analyst, Betty Chen, said, "With a strong August start (positive comps in both brands and all channels), we expect sequential comp gains in ATS stores to build as new leadership affects...Furthermore, Loft continues to benefit from its strong value proposition (~80% priced $50 or under) as the current color/print trend plays well into the brand’s strengths and clean inventories. Finally, we highlight tailwinds from lower input costs in H2, as well as additional opportunity from the more productive ATS concept/capital light stores (expected to reach 1/3 of fleet by F12-end), growth of the higher-margin DTC and Outlet channels, as well as the inaugural openings in Toronto and int’l shipping in late F12. With easier compares throughout much of H2 and initiatives to drive top line and margin expansion, we continue to recommend ANN shares."
Chen maintains her Q3 EPS forecast of $0.73 and expect consolidated comps of 4.5% (with ATS +6% and Loft +3%), gross margins up 20 bps and EBIT margin of 9.6%.
Wedbush raises FY12 EPS estimate from $2.05 to $2.18 and FY13 from $2.35 to $2.45.
For an analyst ratings summary and ratings history on Ann Inc. click here. For more ratings news on Ann Inc. click here.
Shares of Ann Inc. closed at $28.14 yesterday.
Analyst, Betty Chen, said, "With a strong August start (positive comps in both brands and all channels), we expect sequential comp gains in ATS stores to build as new leadership affects...Furthermore, Loft continues to benefit from its strong value proposition (~80% priced $50 or under) as the current color/print trend plays well into the brand’s strengths and clean inventories. Finally, we highlight tailwinds from lower input costs in H2, as well as additional opportunity from the more productive ATS concept/capital light stores (expected to reach 1/3 of fleet by F12-end), growth of the higher-margin DTC and Outlet channels, as well as the inaugural openings in Toronto and int’l shipping in late F12. With easier compares throughout much of H2 and initiatives to drive top line and margin expansion, we continue to recommend ANN shares."
Chen maintains her Q3 EPS forecast of $0.73 and expect consolidated comps of 4.5% (with ATS +6% and Loft +3%), gross margins up 20 bps and EBIT margin of 9.6%.
Wedbush raises FY12 EPS estimate from $2.05 to $2.18 and FY13 from $2.35 to $2.45.
For an analyst ratings summary and ratings history on Ann Inc. click here. For more ratings news on Ann Inc. click here.
Shares of Ann Inc. closed at $28.14 yesterday.
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