Ahead of the Bell: Saks upgraded (AP)
Fri, 12 Jun 2009 13:17:15 Etc/GM
Deutsche Bank analyst Bill Dreher Jr. wrote in a note on Friday that Saks Inc. has "solid initiatives and strategies" that will help drive 2012 margins to pre-recession 2007 levels.
He upgraded the stock to "Buy" from "Hold" and set a $7 price target on the stock.
Saks has been among the hardest hit as consumers cut back on luxury purchases amid the recession. But Dreher said results will improve.
"Saks' comps are highly correlated to the stock market," he said. "Therefore we believe it is highly likely that sales will improve substantially as the Dow recovers to levels that assure luxury consumers."
The company has also done a good job with cost cuts amid the slowdown, he added.
source: http://biz.yahoo.com/ap/090612/us_saks_ahead_of_the_bell.html?.v=1