Chico's FAS' Solid Q2 Results Prompts 16% Price Target Hike By This Analyst

Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on Chico's FAS Inc CHS and raised the price target to $7 from $6.
The analyst said Chico's reported strong Q2 results and raised its annual outlook for the second consecutive earnings release this year.
The company's improved merchandising and marketing efforts are meeting the heightened demand associated with a return to work and occasions, added Telsey.
The analyst said topline expansion for the quarter came from both digital and store channels.
With inventories elevated and markdowns ramping up in the department store channel, Telsey sees competitive promotional activity as a risk in 2H.
The analyst opined that the company remains highly focused on continuing to find ways to improve its sourcing and logistics to help drive efficiencies and reduce costs.
Chico's air expenses in Q2 were 85% lower than last year, and it has reduced overall freight costs by 50%, said Telsey.
Price Action: CHS shares are trading lower by 3.96% at $5.45 on the last check Thursday.