UPDATE: Imperial Capital Initiates Outperform, $13 PT on The Bon-Ton Stores
Imperial Capital initiates its coverage on The Bon-Ton Stores (NASDAQ: BONT) with an Outperform rating and a price target of $13 per share as the company's leveraged equity has potential upside likely to lead to turnaround.
Imperial Capital says, "Given Bon-Ton's high debt leverage and low share count, we think we will continue to see significant share price volatility—potentially providing a more attractive entry point. However, we are encouraged by new management, the $50mn upfront payment on the new credit card agreement, and potentially stronger earnings traction in 2013 on revenue-driving initiatives."
BONT closed at $8.06 a share on Friday.
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