Prudential Raises Chico's Price Target

Analyst Stacy Pak says the fashion retailer's first-quarter earnings beat her and consensus estimates and inventories are improving

Prudential raises Chico's FAS (CHS ) target price and reiterates the stock at overweight.

Analyst Stacy Pak says the company's 26 cents first-quarter earnings per share was above her estimate and her consensus estimate of 25 cents.

She notes May comparable sales are currently running in the low double-digit range. She says inventories were high at the end of the quarter, but already better.

Pak tweaks her $1.00 fiscal 2006 (ending January) earnings per share estimate to $1.03, and $1.20 fiscal 2007 earnings per share estimate to $1.21. She raises her $30 stock price target to $39.