Janney Montgomery Scott Upgrades Express Inc. (EXPR) to Buy

Janney Montgomery Scott upgraded Express Inc. (NYSE: EXPR) from Neutral to Buy with a price target of $20 based on an event-driven scenario amid news on June 12, 2014, Sycamore Partners disclosed a 9.9% stake in EXPR and requested access to the company for due diligence in order to submit a bid for the company.

Analyst Adrienne Tennant cited: 1) our LBO analysis that suggests a deal could be priced at $22.33 and would still be at the lower end of historical takeout multiples in the space and 2) our belief that the pre-existing relationship between Sycamore’s founder and CEO, Stefan Kaluzny, and EXPR management from a previous Golden Gate transaction makes the likelihood of deal consummation extremely high.

For an analyst ratings summary and ratings history on Express Inc. click here. For more ratings news on Express Inc. click here.

Shares of Express Inc. closed at $16.54 yesterday.

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