The firm said it raised its rating on the retailer of casual to dressy women's clothing and accessories as it believes the company's EBIT margins will begin to stabilize, following Chico's recent string of disappointing quarters.
Oppenheimer upped its price target on Chico's stock to $18 from $16.
Separately, TheStreet Ratings team rates CHICOS FAS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHICOS FAS INC (CHS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
You can view the full analysis from the report here: CHS Ratings Report