Oppenheimer Reiterates New York & Co Outperform, Raises PT To $6.50 (NWY)

Oppenheimer reiterated its New York & Co NWY Overweight rating and raised New York & Co's price target from $5.70 to $6.50 in a research note published today.

In the report, Oppenheimer states, "NWY reported FY4Q10 EPS of $0.24 (with a $0.04 non-operating tax adjustment), above our/consensus estimates of $0.17, guidance of $0.15-$0.19 and versus $0.04 LY. Revenues rose 1.7% to $303.2M on a 1.7% comp (vs. -7.7% LY) and a 10% average in-store inventory decline. GM increased 230 bps (150 bps buying/occupancy, 80 bps merchandise margin); SG&A was flat. Operating margin improved 300 bps to 4.1%. FY1Q11 guidance implies EPS in line with our/consensus of $(0.09)/$(0.08). We're encouraged by 4Q results and assert that NWY is in the early stages of a turnaround and should return to 9% peak operating margins."

Shares of New York & Co were at $5.67 in Thursday after hours trading, up 4.04% from Thursday's market close.