JAS Gains Profitable Market Share
Analysts at Soleil Securities reiterate their "buy" rating on Jo-Ann Stores (NYSE: JAS). The target price for JAS is set to $40.45.
According to Soleil Securities, “Within the past week, earnings releases by two competitors - Hancock Fabrics (NASDAQ: HKFI) and AC Moore (NASDAQ: ACMR) suggest that JAS is continuing to gain market share relative to its publicly reporting competitors. We see market share growth as the key driver to future EBIT% improvement, which we see increasing several hundred bps over the next several years.”
“Overall, JAS reported a 4.4% comp increase in Q4. Importantly, we think that the improvement in share is coming from better execution, not price discounting. Reported GM% was up 410 bps for JAS vs. 120 bps increase at ACMR and a 130 bps decline at HKFI,” the analysts add.
