Sterne Agee Reiterates Buy and PT of $62 on Jos A Bank Clothiers

Sterne Agee reiterated its Buy rating on Jos A Bank Clothiers JOSB. at the same time, the rating agency left its price target on the company's stock unchanged at $62 after a meeting with the company's management. In a research report published today, Sterne Agee states, "Operating margins could get a boost over time from the growing tux rental business with an incremental margin of over 40% and higher gross margins once JOSB develops its own inventory, expansion of DTC with a 40% margin and factory outlets which for many retailers are the highest margin concept. Further some 40% of the chain has not yet reached maturity with the chain's four wall margin last year at 24% and new stores typically performing in the low double digits... We continue to rate JOSB a buy with a $62 price target based upon 15x our forward estimate." On Tuesday, Jos A Bank added 1.85% to its value to close the day at $48.88.