UPDATE: Nomura Initiates Coverage on Express on Multiple Positive Factors
In a report published Monday, Nomura analyst Simeon Siegel initiated coverage on Express (NYSE: EXPR) with a Buy rating and $25.00 price target.
In the report, Nomura noted, “We are launching coverage of Express Inc. (EXPR) with a Buy rating, based on improving product-driven comps, margin opportunity following recent reset, and meaningful potential FY14 upside from cash utilization. We project FY13/FY14 EPS of $1.64/$1.86, which we believe will prove conservative (and which do not include the potential $0.15-0.20 from a combination of share repurchases and debt management alluded to above), compared with the Street at $1.60/$1.81. Our $25 target price is based on 13-14x our FY14 estimate versus the peer group average 14x multiple and EXPR's historical average of 11x.”
Express closed on Friday at $21.69.
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