UPDATE: KeyBanc Upgrades Chico's FAS To Buy, Shares Trading Up Nearly 4% Following Note


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


KeyBanc Captial Markets' Edward Yruma upgraded his rating on Chico's FAS, Inc. (NYSE: CHS) from Hold to Buy Tuesday morning. Yruma established a target price of $21 for Chicos shares. Chicos' is currently trading at $16.99, up $0.51.It should be noted Yruma has been sitting on the sidelines in shares of Chico's for nearly two years, thus representing a change in tendency. In the note, Yruma seems giddy, highlighting that recent meetings with Chico's management left him feeling impressed. Yruma said he now believes "self-inflicted issues" are behind the fashion conglomerate.In CHS' stable of fashion brands are three names Yruma believes are poised for growth:

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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  • White House | Black Market - brand has struggled in the past with issues concerning its core concept, chic women's wear in shades of black and white. Yruma believes WHBM has put those problems behind it, emphasizing this relevant concept with renewed force. Notably, WHBM operates less stores than competitors such as LOFT, a division of Ann Inc. (NYSE: ANN). Yruma believes CHS possesses "a vehicle to drive near-term square footage growth."
  • Soma - CHS' brand of intimate wear has undergone many transformations, notably as a spacefiller in other CHS brand stores. Now the brand is profitable and solidly positioned to target women 35 years of age and older. Lingerie giant Victoria's Secret, of L Brands Inc. (NYSE: LTD), has focused on a younger demographic, enabling significant growth potential for Soma, according to Yruma.
  • Boston Proper - acquired by CHS as a mail order business, has demonstrated retail sales productivity similar to WHBM in three stores opened in August. Of note, CHS "trades at a meaningful discount to it peers despite its long-term growth potential and strong cash position," Yruma said.
Shares of Chico's FAS are trading up more than 3.5 percent Tuesday afternoon.
Posted In: Analyst ColorNewsUpgradesPrice TargetAnalyst RatingsApparel RetailConsumer Discretionary