UPDATE: Piper Jaffray Raises PT to $4 on Cache; Confidence on New CEO Initiatives

Piper Jaffray maintained Cache CACH with a Neutral rating and raised the price target from $3.00 to $4.00. Piper Jaffray analyst Neely J.N. Tamminga noted, "New CEO Jay Margolis, a former CEO of Limited Brands' Apparel Group, outlined his strategic priorities, which include reducing time to market, moving towards a broader "lifestyle" assortment, and continuing to invest in the e-commerce channel. We are encouraged by these initiatives, which we would characterize as ambitious yet achievable. Regarding near-term results, it appears that Q1 gross margin will likely be under pressure given clearance inventory that was carried into the quarter from Q4." Cache closed at $3.86 on Tuesday.