Citigroup Reiterates Buy Rating On Saks
Citigroup has published a research report on Saks Incorporated (NYSE: SKS) after meeting with company management.
In the report, Citigroup writes "Our upbeat meeting with management reinforced our belief that the company is still in the early innings with many of its key initiatives, and the biggest opportunities in 2011 include: 1) growth in Saks Direct, 2) the implementation of the Hold and Flow initiative, and 3) increased localization. Management also reiterated its commitment to achieving an 8% operating margin over time. SKS believes that it is playing offense online after years of playing defense. Management expects the outsized growth online to continue as SKS develops more creative and personalized online marketing strategies and improves DC logistics with its Kiva Systems warehouse automation system. The company is also working on capabilities to fulfill online orders through the Hold and Flow inventory management system."
Citigroup maintains its Buy rating and $15 price target.
Saks Incorporated closed yesterday at $11.60.
