Goldman Sachs Removes CHS From Conviction Sell List; Maintains Sell Rating

Goldman Sachs said that while it initially added Chico's FAS, Inc. CHS to the Conviction Sell list “as we were skewing exposure toward defensive/late cycle names,” GS has removed it from the list given a healthier than expected sector backdrop. “We maintain our Sell rating as we continue to see risk to aggressive 2011 numbers, particularly in light of deceleration in CHS sales/margin trends,” Goldman Sachs writes. “Since adding CHS to the Conviction Sell list on 7/26 shares are +21% vs. our coverage +20%. Over the last 12 months CHS shares are down 11% vs. our coverage +43%.” Chico's FAS closed Friday at $12.48.