Wells Fargo Raised Estimates On Jo Ann Stores After Strong Earnings (JAS)

Wells Fargo Securities is raising its earnings estimates on shares of Jo-Ann Stores, Inc. JAS after the retailer reported much better than expected earnings. It rates 1/V and has a $49-$52 price target on shares. In a note to clients, Wells Fargo writes, "We believe Jo-Ann continues to gain share from Wal-Mart, which remains on pace to exit fabric in 550 stores this year (up from 500 last year) and is also reducing square footage in some craft categories by 50%. Based on strong traffic trends, improving sales in new stores (we believe some are capturing a disproportionate amount of Wal-Mart's business based on their locations), and better than expected benefits from global sourcing, we are raising estimates as follows: Our FY10 EPS estimate goes from $3.23 to $3.41, and our FY11 EPS estimate goes from $3.70 to $3.91. Our valuation range goes from $48-51 to $49-$52." Shares of Jo-Ann Stores are skyrocketing today, gaining 12.8% to $41.50.