UPDATE: Citi Raising Price Target On DSW

Citi Investment Research is out with a research report on DSW Inc. DSW and it has a Buy rating and is raising its price target to $62. In a note to clients, Citi Investment Research writes, "We are updating our thoughts ahead of an expected cash event and on the heels of what appears to be a strong end to 2Q. We see upside to the quarter on solid sales and margins. Looking into 2H, we think the company has been able to confine input cost increases to the low- to mid-single digit range, with boots skewing a bit higher. As a result, guidance for a flat gross margin for the year appears conservative and we reiterate our Buy rating. DSW added kids to its e-commerce platform this week and additional growth in the leased division and owned units should dovetail with benefits from recent systems implementations to drive upside into next year. We are raising our 2012 estimate to $3.45 and moving our price target to $62." Shares of DSW lost 22 cents yesterday to close at $54.00.