Goldman Sachs Removes CHS From Conviction Sell List; Maintains Sell Rating

Goldman Sachs said that while it initially added Chico's FAS, Inc. (NYSE: CHS) to the Conviction Sell list “as we were skewing exposure toward defensive/late cycle names,” GS has removed it from the list given a healthier than expected sector backdrop.

“We maintain our Sell rating as we continue to see risk to aggressive 2011 numbers, particularly in light of deceleration in CHS sales/margin trends,” Goldman Sachs writes.

“Since adding CHS to the Conviction Sell list on 7/26 shares are +21% vs. our coverage +20%. Over the last 12 months CHS shares are down 11% vs. our coverage +43%.”

Chico's FAS closed Friday at $12.48.