UPDATE: Oppenheimer Initiates Coverage on Conn's with Outperform Rating, $54 PT on Early Stage Improvement

In a report published Wednesday, Oppenheimer analyst Brian Nagel initiated coverage on Conn's

with an Outperform rating and $54.00 price target. In the report, Nagel noted, “We are initiating coverage of Conn's with an Outperform rating and 12-18-month price target of $54. A few years ago, CONN embarked upon an aggressive repositioning strategy. Under the leadership of new CEO Theo Wright, CONN rationalized its base of superstores and tweaked its merchandising mix to better serve the needs of its core low to middle income consumers. The company's in-house finance operations represent a core profit driver and key competitive advantage versus other retail chains. Improving results have fueled marked outperformance in the shares. We, however, believe that the CONN story is still in the early stages and that the market continues to underappreciate the near- and longer-term EPS power of the chain.” Conn's closed on Tuesday at $42.42.