UPDATE: Citi Raises PT on Carter's to $33 (CRI)

Citi is out with its report today on Carter's CRI, raising its PT from $30 to $33. In a note to clients, Citi writes, "We believe CRI will trade above this multiple at 16x during the current depressed EPS period given a better macro environment and strong topline growth from CRI's growth initiatives and strong value/quality equation. In 2007 and 2008, topline growth was in the mid-single digits and we are expecting double digit topline growth in 2011. Additionally, COGS pressure for CRI is known for 2011 and we believe this is priced into the stock. Additionally, the company approved a new $100 million share repurchase program in June 2010. Recall, the company pulled back from repurchasing shares in 2009 and 1H10 due to the macro environment. A return of value to shareholder's should also drive a slightly higher P/E multiple. As a result, we are applying a ~16x P/E multiple on our 2012 EPS estimate, which yields a $33 price target." Citi maintains Hold on CRI. Shares of CRI closed Friday at $30.92.