Cowen Reiterates Market Perform on Ascena Retail Group (ASNA) as Justice Remains Key Driver
Cowen maintained a Market Perform rating on Ascena Retail Group (NASDAQ: ASNA), and cut the price target to $10.00 (from $11.00), following the company's 2Q. Justice remains a key driver for ASNA, performing in-line with management's plan. ASNA reaffirmed EPS guidance, but expectations are now 4Q weighted.
Analyst Oliver Chen commented, "After disappointing holiday comps, we're encouraged inventories ended F2Q clean (all brands), F3Q QTD biz. is running better than F2Q & ANN integration progressing. That said, implied F4Q guide assumes a somewhat aggressive sequential improvement in Justice comps/GM given the challenging backdrop. Lower PT to $10 (was $11) on ~11x FY17E EPS."
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Shares of Ascena Retail Group closed at $8.85 yesterday.