Deutsche Bank Has Hold on Saks
Deutsche Bank is out with a research report on Saks (NYSE: SKS) and it has a Hold rating and a $9 price target on shares.
In a note to clients, Deutsche Bank writes, "Mr. Sadove characterized trends as “healthy” yet “not quite as robust as earlier in the year”, which meshes well with Saks SSS slowdown from 1H11 to 3Q11. On a favorable note, day-to-day sales volatility is nowhere close to the Fall of '08. The south, particularly FL, remains the strongest region while trends in handbags, shoes, and accessories are the healthiest categories (as women's designer remains a laggard). As for NYC, trends continue to parallel the co. avg. with tourism described as a “push”. Overall, we thought mgmt. was a bit more upbeat than expected, which lends some credence to its 4Q SSS view (+ low-to-mid SD), which we still find to be a bit optimistic as it cycles a 8.4% comp from last year."
Shares of SKS lost 64 cents yesterday to close at $9.73.
