Talbots Improves Margin, Citi Approves

Citi analysts Kimberly Greenberger and Nicholas Smith maintained their price target and reiterated a Buy rating for Talbots Inc. (NYSE: TLB) Talbots is an international retailer of women's apparel.

Talbots reported a huge 1260 bps gross margin increase. TLB has experienced 11 straight quarters of Y/Y sales declines, so a return to positive sales growth in first quarter is certainly welcome.

The analysts said, "We believe the stock is poised to go higher as margin improvement should drive earnings growth with minimal comps, though we expect comps will accelerate in 2H10."

Citi's target price for TLB is $19. TLB is currently trading at $12.20.