Citigroup Maintains Buy, Raises PT to $31 on Ann Inc

Citigroup reiterates its Buy rating on Ann Inc (NYSE: ANN) and raises its price target to $31 from $30 as it sees LOFT downside limited given efforts made to improve fashion/basics mix.

Citigroup notes, "The restructuring over the last few years has resulted in a structure which can leverage SG&A on modest comps. We see significant leverage on improving sales going forward as management works to improve productivity at both divisions. ...The primary risks to the stock trading above our target price include: 1) better-thanexpected total and comp sales; and 2) significant gross margin expansion as a result of input cost deflation."

ANN closed at $24.84 per share on Wednesday.