Liz Claiborne Shares Soar On Analyst's Forecast

NEW YORK (AP) — Liz Claiborne Inc. shares soared Monday after a Goldman Sachs retail analyst upgraded them to a "buy" rating and raised his target price, saying a significant recovery is at hand, fueled by leaner inventories, debt reduction and the overhaul of its namesake brand.

Goldman Sachs retail analyst Benjamin H. Rowbotham wrote Monday that, "after a tough 2008, we believe fundamental change is afoot." He predicted the company's first-quarter results, to be released later this month, will serve as a "a positive inflection point" — the trough in deterioration of the company's earnings before interest, taxes, depreciation and amortization.

"We see this as the last 'incrementally bad' fundamental quarter," Rowbotham said. He expects a loss of 25 cents per share in the first quarter, matching Wall Street estimates. ...