Sterne Agee reiterated its Buy rating on Jos A Bank Clothiers JOSB. at the same time, the rating agency left its price target on the company's stock unchanged at $62 after a meeting with the company's management.
In a research report published today, Sterne Agee states, "Operating margins could get a boost over time
from the growing tux rental business with an incremental margin
of over 40% and higher gross margins once JOSB develops its
own inventory, expansion of DTC with a 40% margin and
factory outlets which for many retailers are the highest margin
concept. Further some 40% of the chain has not yet reached
maturity with the chain's four wall margin last year at 24% and
new stores typically performing in the low double digits... We continue to rate JOSB a buy with a
$62 price target based upon 15x our forward estimate."
On Tuesday, Jos A Bank added 1.85% to its value to close the day at $48.88.
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Posted In: Analyst ColorAnalyst RatingsApparel RetailConsumer DiscretionaryJos A Bank ClothiersSterne Agee
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