UPDATE: Monness Crespi Hardt Reiterates Buy Rating, Raises PT on Fifth & Pacific Companies on Compelling Portfolio

In a report published Wednesday, Monness Crespi Hardt reiterated its Buy rating on Fifth & Pacific Companies (NYSE: FNP), and raised its price target from $15.00 to $21.00.

Monness Crespi Hardt noted, “We continue to recommend FNP shares with a Buy rating and are raising our price target to $21 (from $15). The company has a compelling portfolio of brands including one of the fastest growing apparel, accessories and footwear brands in kate spade, a solid growth and margin story in Lucky and a turnaround at Juicy. We believe management is committed to unlocking shareholder value through either the sale of Lucky and Juicy or an IPO of kate spade in the next twelve months. We use a sum of the parts analysis to arrive at our $21 price target. We use target multiples of 3.3x sales for kate spade (from 3.0x), 8x EV/EBITDA for Lucky and 0.45x sales for Juicy. We had previously used a blended target with included a sum of the parts and EV/EBITDA valuation. Given management's expressed commitment to unlocking shareholder value, we believe a sum of the parts valuation is appropriate.”

Fifth & Pacific Companies closed on Tuesday at $17.31.