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Deutsche Bank Initiates Coverage On 9 Specialty Retailers

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After Tuesday's close, Deutsche Bank issued new coverage on nine U.S. Specialty Retail names. Analyst Paul Trussell says apparel is challenging and e-commerce tops the list of concerns.

Buy

  • Expects EBIT to continue expanding in 2016 on heels of improvement in GPM rate, expects productivity metrics to continue to improve.
  • Believes margins can expand to new peak levels and sees dividend increase, buybacks and special dividends continuing to make L Brands "the best-in-class shareholder return story."
  • Believes Jos A Bank turnaround can succeed, says "market destruction has been out of proportion with limited downside risk at current levels."

Hold

  • Sees headwinds dampening company's 10-12 percent EBIT goal in GPM and SG&A.

Chico's FAS, Inc. CHS 1.79% initiated at Hold with a $23 PT

  • Lack of clarity from CEO leaves shares rangebound.
  • Sees an offset for every positive margin driver, says pace of forward growth in question as traffic declines.

Sell

  • Expects company initiatives to be dampened by industry headwinds and turnaround challenges.
  • Expects comps to remain negative as traffic trends remain negative, says women's denim faces challenges.
  • Negative comps to drive margin pressure, expects further market share losses.
DateFirmActionFromTo
Apr 2016Deutsche BankInitiates Coverage onBuy
Apr 2016Stifel NicolausUpgradesHoldBuy
Apr 2016Goldman SachsDowngradesBuyNeutral

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