Goldman Sachs Says Saks "Firing On All Cylinders" (SKS)

Goldman Sachs has a Neutral rating and is raising its price target to $12.50 from $12 on shares of Saks SKS after the company reported earnings. In a note to investors, Goldman writes, "SKS reported operating EPS of $0.17, in-line with GS and a penny ahead of consensus at $0.16. Gross margins were up 100 bps in the quarter, but expense leverage was limited as heavy IT spending in 2H has yet to be lapped. Management raised guidance across sales, margins and expense leverage as continued full price selling drives top line, margin expansion and comp leverage. We are raising our F11/12/13 EPS estimates to $0.37/$0.50/$0.55 from $0.35/$0.44/$0.54 on better sales and margins." Shares of SKS lost 7 cents yesterday to close at $11.20, a loss of 0.6%.