Benchmark Maintains Buy on Warnaco Group (WRC)

Benchmark is out with its report today on Warnaco Group WRC, maintaining Buy. In a note to clients, Benchmark writes, "The balance sheet should remain strong, providing flexibility to fund organic growth, pursue strategic acquisitions, and explore other opportunities to enhance shareholder value including share repurchases. In 2010, Warnaco repurchased 2.4 million shares, and already repurchased 560,000 shares in 2011 leaving approximately 3.5 million shares authorized. In 2009, Warnaco bought back the remaining senior notes totaling over $164 million. For 2011, we expect approximately $40 million in capex, as the company continues to open retail stores. We expect the company to be about $200 million free cash flow positive in 2011. We believe these actions show that Warnaco is enhancing shareholder value." Benchmark maintains $65 PT on WRC. At the time of posting, shares of WRC were trading at $63.05, up 0.08% from Monday's close.
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