Janney Initiates J. Crew With "Buy" (JCG)

Janney has initiated coverage of J. Crew (NYSE: JCG) with a "Buy" rating and a price target of $41.

Janney says trade checks show sustained strong traffic and conversion trends at the specialty retailer. The firm believes there is still room for margin expansion, even at records highs.

Their "Buy" rating is based on a 15% three-year growth rate times their fiscal 2011 EPS estimate of $2.73.

J. Crew is expected to report earnings after the close on August 26. The current consensus is for second quarter EPS of $0.46 on revenues of $403.65 million.

Shares of J. Crew are lower today by 80 cents, or 2.36%, to $33.10. Shares have traded between $30.95 and $50.96 over the last year.

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