Ahead Of The Bell: Jo-Ann Stores

NEW YORK (AP) — An analyst boosted Jo-Ann Stores Inc.'s price target Thursday on better-than-expected second-quarter results.

Late Wednesday the fabric and craft retailer reported a smaller-than-expected loss of 13 cents per share on improving sales. Analysts polled by Thomson Reuters, whose estimates typically exclude one-time items, forecast a second-quarter loss of 39 cents per share.

William Armstrong of CL King & Associates said in a client note that he also expected a loss of 39 cents per share for the quarter, and believes the stock is appealing at its current level.

"Management's turnaround efforts are on track," he wrote.

Armstrong raised his full-year profit estimate to $1.38 per share from $1.05 per share after the Hudson, Ohio-based company lifted its adjusted outlook to a range of $1.35 to $1.50 per share from 70 cents to 85 cents per share.

Analysts expect full-year net income of $1.10 per share.

Armstrong said his increased full-year guidance prompted him to lift Jo-Ann's price target to $32 from $26. He reaffirmed a "Strong Buy" rating.

In premarket trading, Jo-Ann shares rose $1.54, or 6 percent, to $27.19.