Citi Analyst Says Saks Could Be Worth $19/Share in Takeover

Citi's Deborah Weinswig boosted her price target on Saks SKS Wednesday morning as investors and traders are responding to a number of rumors. Shares of Saks were up around 14 percent throughout most of Wednesday's morning session; the stock spiked even higher just after noon amid a rumor KKR KKR may be considering an investment in the retailer, and potentially push for a merger with Neiman. The stock last traded at $15.83, up nearly 16 percent. Weinswig's target on Saks now sits at $17, up from $12 previously. She maintains a Neutral rating on the stock. The Citi analyst believes Saks could be worth $19 per share in a takeover. Her model assumes about 10x enterprise value to 2014 EBITDA of around $303 million. Weinswig placed a 75 percent change Saks could be purchased by a suitor.