Saks, Inc. (SKS) has upgraded its recommendation to Outperform from Neutral, following the better-than-expected second-quarter 2011 results. The company is driven by strong same-store sales growth and gross margin expansion.
Moreover, the company is optimistic going forward that the sales growth across store formats will be supported by its merchandising, service and marketing initiatives. Further, the company intends to be very strategic in its SG&A spending, inventory management and capital expenditure investments.
Our six-month target price of $11.00 per share equates to about 32.4x of earnings estimate for 2012. This target price implies the expected total return of 21.4% over that period.
SAKS INC (SKS): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment