Morgan Stanley Reiterates Equal-Weight on Saks (SKS)

Morgan Stanley is out with its report today on Saks SKS, reiterating Equal-weight.

In a note to clients, Morgan Stanley writes, "Following meetings with management, we reiterate our Equal-weight rating on SKS shares. While we prefer fundamentals in the high-end department store space to the mid-tier space and believe Saks has further improvement in gross margins ahead of it, we think a lot of good news is already priced into the stock. Our analysis shows that
even if we assume an 8% EBIT margin by 2014 and discount back to today, there is ~7% upside to SKS' stock price."

Shares of SKS closed Wednesday at $11.83, down 2.63% from Tuesday's close.