UPDATE: Imperial Capital Initiates Outperform, $13 PT on The Bon-Ton Stores

Imperial Capital initiates its coverage on The Bon-Ton Stores

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.