J. Crew To Perform Well : Retains ‘Hold’ Rating (JCG)

J. Crew Group JCG has posted impressive quarterly earnings numbers. It also announced rising sales, margins and good earnings growth. However, Jefferies & Co. has reiterated its ‘Hold’ rating for the stock due to it high valuation. The company has surpassed expectations in the past, hence it needs to produce stellar results in order to maintain the momentum. The company has given conservative guidance for the year. J. Crew (JCG) expects to report 40c-45c in EPS for Q2, in comparison to consensus of 44 cents. The stock’s current valuation is on the high side, and seems to factor in the company’s strong fundamentals. The company has been given a price target of $17 at Jefferies.