J.P. Morgan Upbeat on Ann Taylor (ANN)

J.P. Morgan published its research report today on Ann Taylor

after meeting with CEO, Kay Krill, CFO, Mike Nicholson, EVP Chief Supply Chain Officer, Paula Zusi and VP Investor Relations, Judy Lord. In an update to clients, J.P. Morgan states, "Given the 3-year restructuring initiatives that began in January 2008 (closing 145 underperforming stores, creating $125 million in annualized cost savings), we believe ANN represents an extremely lean business model with very high flow rates off of trough productivity levels. When you layer on MSD comps and a buyback program, it becomes conceivable that the company can surpass prior EPS peaks and potentially reach $3.50 to $4.00 over the next 4-5 years. We are Neutral on valuation grounds and the stock's 100% increase in the past four months." J.P. Morgan has a $28 price target on ANN. ANN closed yesterday at $26.95.