Chico’s FAS, Inc. (CHS) Earns Buy Rating from FBR & Co
Chico’s FAS, Inc. (NYSE:CHS)‘s stock had its “buy” rating reissued by equities researchers at FBR & Co in a research report issued to clients and investors on Thursday. They presently have a $14.00 price objective on the specialty retailer’s stock. FBR & Co’s price target would suggest a potential upside of 86.17% from the company’s current price.
The analysts wrote, “CHS reported 2Q EPS of $0.18 versus FBR/consensus of $0.19/$0.21 (see 2Q drivers here). CHS is on track to achieve its annualized $100-$110M in savings and expects to realize $25M in 2H17. Management also noted that they have been able to find incremental savings. Management provided updated 2017 guidance around GM of -75 to -100 bps (from flat to +30 bps) due to lowered SSS of -HSD (from -MSD), and SGA expense to be down around $50 to $60 million (from flat). CHS closed 10 stores this quarter and noted that rent was down for the first time this quarter driven by closed stores/rent negotiations (3/4 of boutiques have renegotiable lease terms through 2020). Management pushed back its timeline to achieve DD op margin, which it previously set for 2019, based on lower comps and sales trends YTD. Management has done a good job getting CHS’s cost structure in line with the new omni environment, in our view, and once top line turns we believe there is significant margin upside potential from cost-cutting/operational initiatives. We remain aggressive buyers of CHS given its strong brands, differentiated model and loyal customer.””
Other research analysts have also issued reports about the stock. Zacks Investment Research upgraded shares of Chico’s FAS from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 25th. Jefferies Group LLC set a $14.00 price target on shares of Chico’s FAS and gave the stock a “hold” rating in a research note on Thursday, May 4th. BidaskClub raised shares of Chico’s FAS from a “strong sell” rating to a “sell” rating in a research note on Tuesday, June 27th. Deutsche Bank AG lowered their price objective on shares of Chico’s FAS from $16.00 to $11.00 and set a “hold” rating for the company in a research note on Thursday, May 25th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $12.00 price objective (down from $16.00) on shares of Chico’s FAS in a research note on Thursday, May 25th. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and six have given a buy rating to the company. Chico’s FAS currently has an average rating of “Hold” and a consensus price target of $13.21.
Chico’s FAS (NYSE CHS) opened at 7.52 on Thursday. The stock’s 50 day moving average price is $8.60 and its 200-day moving average price is $11.43. The firm has a market cap of $947.90 million, a price-to-earnings ratio of 10.49 and a beta of 0.66. Chico’s FAS has a one year low of $6.96 and a one year high of $16.85.
Chico’s FAS (NYSE:CHS) last posted its quarterly earnings results on Wednesday, August 30th. The specialty retailer reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by $0.03. Chico’s FAS had a return on equity of 17.36% and a net margin of 3.86%. The company had revenue of $578.60 million during the quarter, compared to the consensus estimate of $578.58 million. During the same period last year, the firm posted $0.25 EPS. The company’s revenue for the quarter was down 9.0% compared to the same quarter last year. Analysts forecast that Chico’s FAS will post $0.79 earnings per share for the current year.
In related news, Director Ross E. Roeder sold 10,000 shares of the business’s stock in a transaction dated Monday, June 12th. The shares were sold at an average price of $9.75, for a total value of $97,500.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 3.00% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in shares of Chico’s FAS by 21.4% in the second quarter. Vanguard Group Inc. now owns 15,134,008 shares of the specialty retailer’s stock worth $142,563,000 after buying an additional 2,671,543 shares during the last quarter. BlackRock Inc. raised its stake in Chico’s FAS by 21,451.3% in the first quarter. BlackRock Inc. now owns 13,414,812 shares of the specialty retailer’s stock valued at $190,490,000 after buying an additional 13,352,566 shares in the last quarter. Wellington Management Group LLP raised its stake in Chico’s FAS by 37.4% in the first quarter. Wellington Management Group LLP now owns 8,743,445 shares of the specialty retailer’s stock valued at $124,158,000 after buying an additional 2,379,362 shares in the last quarter. JPMorgan Chase & Co. raised its stake in Chico’s FAS by 7.4% in the second quarter. JPMorgan Chase & Co. now owns 8,168,254 shares of the specialty retailer’s stock valued at $76,945,000 after buying an additional 562,990 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Chico’s FAS by 8.0% in the second quarter. Dimensional Fund Advisors LP now owns 7,333,568 shares of the specialty retailer’s stock valued at $69,082,000 after buying an additional 542,757 shares in the last quarter.
Chico’s FAS Company Profile
Chico’s FAS, Inc is an omni-channel specialty retailer of women’s private branded, casual-to-dressy clothing, intimates and accessories, operating under the Chico’s, White House Black Market (WHBM) and Soma brand names. The Company is also engaged in the sale of merchandise in its domestic and international retail stores.
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