J.P. Morgan Rates Joseph A. Bank At Neutral (JOSB)

J.P.Morgan Chase & Co. rates shares of Jos A Bank Clothiers Inc, JOSB at Neutral with a $45 price target. In the research note, J.P. Morgan writes, "We are raising our 2010 and 2011 EPS estimates to $3.08 and $3.42 (from $3.00 and $3.35), respectively. We are also introducing our Dec 2011 price target of $45 based on 12-13x our 2011 EPS estimate, a slight discount to the group’s average P/E and EV/EBITDA given EBIT margins and sales productivity that are at all-time highs. While we don’t view the company as a “peak margin” story, the fact is that Q2 trends have slowed and with the combo of slowing sourcing benefits and higher expenses given the new store roll-out in the 2H, a slight discount to the group seems fair. We note that JOSB’s short interest is down significantly to 17% of the float..." Shares of JOSB closed at $41.33 yesterday.