Goldman Sachs Reports on Saks (SKS)

In a report released today, Goldman Sachs commented on Saks SKS. In the report, Goldman was mixed on SKS. Goldman Sachs writes, “We are upgrading SKS to Neutral from Sell as we expected continued EPS upside from the combination of strong sales momentum and margin initiatives to narrow the gap vs. competition. Our downgrade was predicated on a valuation gap we expected to be trimmed, but the market has instead driven a wider wedge between growth and mature retailers. While the valuation does not look compelling and keeps us on the sidelines, SKS trades at a discount to luxury peers. Since adding SKS to the Sell list, the stock is +44.6% vs. the S&P 24.9%; and 3.2% vs. S&P 18.8% over the past 12 months.” Goldman Sachs has a Neutral rating on Saks and a price target of $12.00. Stock of the company closed at $11.34 yesterday, up from the opening price of $11.20.