UPDATE: Stifel Nicolaus Initiates Ann at Hold on Modest Expectations

In a report published Friday, Stifel Nicolaus analyst Richard Jaffe initiated coverage on Ann (NYSE: ANN) with a Hold rating.

In the report, Stifel Nicolaus noted, “We are initiating coverage of ANN INC. (ANN) with a Hold rating on the shares. Inconsistent results, with Ann Taylor and LOFT rarely performing well at the same time, have historically plagued the company, holding back sales and margins. While numerous initiatives have begun in an effort to improve profitability and operating consistency, we believe these efforts will have only incremental impact. As a result, we have only modest expectations for sales growth and margin improvement. Therefore, we do not see a catalyst for multiple expansion and do not expect meaningful stock appreciation from current levels.”

Ann closed on Thursday at $32.59.