Wedbush Starts Ann Inc. (ANN) at Neutral

Wedbush initiated coverage on Ann Inc. (NYSE: ANN) with a Neutral rating and a price target of $43.00. Analyst Morry Brown thinks upside in the stock depends on M&A.

"Our rating reflects a mixed view on near-term sales and earnings trends, given challenges at the LOFT division (particularly within the basic knits assortment) vs. positive SSS trends at Ann Taylor stores. We believe the company is appropriately valued on a fundamental basis. Upside from current levels likely hinges on M&A activity, though fundamental EPS upside could be driven by improving sales at LOFT or Ann Taylor accelerating against easing comparisons," said Brown.

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 $40.50 yesterday.

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