Piper Jaffray Raised Price target on Chicos FAS (CHS) Following a Strong 4Q Performance
Piper Jaffray reiterated an Overweight rating on Chico's, Inc. (NYSE: CHS), and raised the price target to $16.00 (from $15.00), following the company's 4Q earnings report. Comps and EPS came in ahead of expectations and quarter-to-date comps are tracking +1.0%, in line with consensus of +1.0%. FQ4 comps came in at -3.2% vs. consensus of -3.8%. EPS of $0.05, came in above consensus of $0.00.
Analyst Neely Tamminga commented, "We are adjusting our estimates on CHS shares on the heels of their FQ4 earnings release in which comps and EPS came in ahead of expectations and quarter-to-date comps are tracking +1.0%, in line with consensus of +1.0%. Longer-term, we believe the big picture on CHS is this: the company is on a path to return to +10%-plus EBIT margins from this year's 6.8% driven first by discipline in inventory management, cost savings and real estate optimization, followed by category extensions, growth in Soma, digital commerce and international expansion. Having returned $334M to shareholders in 2015 through dividends and share repurchases, we continue to favor shareholder-friendly CHS shares."
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Shares of Chico's, Inc. closed at $12.56 yesterday.