Ann Taylor Stock Selloff "Misguided" -Jefferies
Investment house Jefferies said that the resignation of the COO at women's retailer Ann Taylor's (ANN ) caused investors to oversell the stock today. Analyst Eliot Laurance said that investors who were selling on the resignation were "misguided."
However, he believes there may be a slight negative impact to fourth quarter earnings per share. Laurance doesn't see much upside potential to the stock until the company provides a near-term sales outlook and names a new president and COO.
He said the stock could make a move to the mid $30 range if February sales, as compared with the year ago sales figures, are positive. Laurance sees fiscal year 2001 EPS of $2.15 and 2002 EPS of $2.50. He has a hold rating and a 6 to 12 month price target of $30 on the stock.
Shares of Ann Taylor were down 2-13/16 at 26-1/2.