UPDATE: Citigroup Upgrades Carter's to Buy on Top Line Growth Outlook
Citigroup raises its rating on Carter's (NYSE: CRI) from Neutral to Buy and increases its price target from $54 to $62.
Citigroup says, "We are upgrading CRI to Buy from Neutral based on topline growth of 10%+ over the next several years and EBIT margin expansion driving double-digit EPS growth. The stock is up 33% YTD, but we believe there is more upside in both the short term and the long term. Our new, above- consensus 2013 EPS estimate of $3.81, up from $3.10, represents just 13.6% EBIT margin vs. CRI's peak of 13.9% in 2010 when CRI had lower penetration of high-margin retail, ecommerce, and international. Therefore, there could even be upside to our well-above-consensus estimate. Our new target price is $62, up from $54."
CRI closed at $52.97 on Thursday.
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