UPDATE: Brean Capital Initiates Coverage on Express, Inc. with Buy Rating, $21 PT on Multiple Positive Factors

In a report published Tuesday, Brean Capital analyst Liz Pierce initiated coverage on Express, Inc. (NYSE: EXPR) with a Buy rating and $21.00 price target.In the report, Brean Capital noted, "We are initiating coverage of Express Inc., (EXPR) with a Buy rating and Target Price of $21. EXPR is an iconic dual-gender aspirational lifestyle brand that built its street cred by being a fashion authority for 20- to 30-year old women and men. Over the past couple of years, we believe EXPR's fashion DNA was compromised by some self-inflicted responses to the competitive environment; however, beginning in Q4, the company began to course correct with a brand-right message consistent with its rich fashion legacy. Although we expect the competitive environment to remain challenging, we believe EXPR's curated and well-edited merchandise position combined with its flexible supply chain positions it to defend its turf. Thus, with the brand message back on track, several initiatives in place to lift productivity, and considerable upside growth potential for both online and international, we believe there is a well-defined bridge to FY11's 13% operating margin. We further believe there is no governor to limit operating margin expansion beyond 13%. Accordingly, we are launching coverage with a Buy rating and a $21 target price; our TP is based on a multiple of 16.5x our FY16 EPS of $1.27 and PEG ratio of 0.7x."Express, Inc. closed on Monday at $16.47.