J. Crew Group, Inc.’s (JCG) Price Target Raised

MKM Partners has raised the price target for J. Crew Group, Inc. (NYSE: JCG) from $52 to $56.

The price target has been raised due to an increase in the EPS estimate for 2011. The new price target is based on a multiple of 20x the 2011 EPS estimate of $2.75. The previous EPS estimate for 2011 was of $2.55.

J. Crew Group also reported results for the fourth-quarter on Tuesday. The company reported EPS of $0.61 for the quarter, beating MKM’s forecast of $0.48, and the consensus forecast of $0.46. The earnings upside was due to better-than-expected sales, leverage over expenses, and improved gross margins.

MKM Partners continues to rate J. Crew Group, Inc. as a Buy.