Citigroup Maintains Buy, $14 Target on Saks

Citigroup reiterates its Buy rating and $14 target price on Saks Incorporated (NYSE: SKS) as results driven by margin improvements exceed expectations and the company repurchases shares.

Citi says, “SKS reported 3Q11 EPS of $0.11, which was two pennies above our estimate and consensus of $0.09. Results were driven by impressive gross margin improvement, and Saks repurchased shares for the first time since 2Q08! We believe that Saks' share repurchase activity demonstrates management's confidence in the health of its business and its liquidity position. We continue to see significant opportunity for margin improvement ahead as SKS works towards its 8% EBIT margin goal.”

SKS closed at $9.54 per share on Wednesday.