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Wells Fargo Comments on Ann Inc. (ANN) Q3 Results

November 22, 2013 11:20 AM EST
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Price: $44.89 --0%

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    4 Buy, 15 Hold, 1 Sell

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Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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Wells Fargo maintained a Market Perform rating on Ann Inc. (NYSE: ANN) with a price target of $29-$33. Analyst Paul Lejuez called Q3 a "well-managed" quarter but he thinks gross margin trends are concerning.

"Similar to many across the retail sector, ANN results were hurt by weaker gross margin. Still management did a good job of controlling expenses and the bottom-line result was strong. We are somewhat cautious on FQ4 even with the good start in November, given the retail landscape and the company's history of FQ4 underperformance. As we look to FY2014, we forecast operating margin at about 7%, which is consistent with the 6-7% margin the company has achieved in each of the last four years. For the stock to work, we believe the market needs to see a clearer path to double digits," said Lejuez.

Wells Fargo raised FY2013E from $2.17 to $2.24.

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 $36.27 yesterday.


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