UPDATE: Brean Capital Initiates Coverage on Chico's FAS with Buy Rating, $20 PT on Multiple Positive Factors

In a report published Friday, Brean Capital analyst Liz Pierce initiated coverage on

with a Buy rating and $20.00 price target. In the report, Brean Capital noted, “We are initiating coverage on Chico's FAS, Inc. (CHS) with a Buy rating and a $20 price target. In our opinion, CHS is a Best-of-Breed retailer with a diversified portfolio of powerful brands, leverageable omnichannel infrastructure, strong balance sheet, experienced management team and core competencies in design, sourcing, marketing and logistics. The company's brands include Chico's, Soma Intimates, White House|Black Market (WH|BM) and Boston Proper (BP), each having multiple growth drivers. Although recent results at WH|BM and BP have not been up to the company's historical standards, we believe each brand has returned to core brand attributes and is thus positioned for improved results. Finally, a healthy and growing customer file presents the opportunity for meaningful leverage of the investments made in technology and the distribution center, which we expect to drive upside profit potential. Our $20 price target is based on a multiple of 22x our FY15 EPS estimate of $0.89 and a 1.0 PEG ratio.” Chico's FAS closed on Thursday at $14.98.