Morgan Stanley Closes Research Tactical Idea on AnnTaylor Stores

Morgan Stanley has closed its research tactical idea on AnnTaylor Stores ANN after the stock price moved according to expectations. In the report, Morgan Stanley writes, "As we had anticipated, positive commentary during ANN's 4Q call regarding the business outlook and above-consensus 2012 guidance drove the stock price higher. Specifically, management called out lower promotions vs. 4Q at the Ann Taylor division which should drive significantly improved 1Q gross margin. As we expected from our store checks, management also noted color, stripes, prints, and patterns, currently representing ~70% of Loft's sales for the first time, continuing to show strength." Morgan Stanley maintains its Overweight rating on AnnTaylor Stores, which closed Friday at $27.41. View the opening of the research tactical idea here.