Christopher & Banks' Price Target Raised 100%, Upgraded At Piper

In a report published Monday, Piper Jaffray analysts have upgraded

from Neutral to Overweight. The price target has also been raised from $5 to $10. The analysts expect the company to see a significant increase in sales and EBITDA in 2016 due to its recent real estate strategy changes. "Near-term, we remain confident in CBK's ability to achieve their FQ1 revenue guidance of $90M-$94M and believe the full-year trend is achievable if not beatable depending on the overall sell-throughs in key categories seeing a renaissance--namely, knits," the analysts stated. The analysts believe that the real estate strategy alone could lead to an increase in annual sales per square foot for Christopher & Banks. The company's new store formats are already showing better results than the older ones. In the longer term, Piper Jaffray expects the company to generate improved sales productivity through their move to create more efficient stores, as well as their customer loyalty. This, in turn, should help Christopher & Banks witness an increase in EBIT margins. "We have an increase in confidence in the company's ability to accelerate their topline and improve EBITDA in 2016/FY17 given the unique real estate strategy they have in motion," the analysts said.