NEW YORK (TheStreet) -- Shares of Express (EXPR - Get Report) are up 1.1% to $15.64 in early morning trading after BMO Capital Markets increased its price target to $19 from $16, while maintaining its "outperform" rating.
"With senior notes due 2018 redeemed in full, we see management as in flexible position to begin to execute on its $100 million repurchase authorization as the year progresses, should it choose to do so," analysts said.
Analysts are looking for the newly restrained approach to promotions to continue to fuel quality earnings and see implied merch margin guidance as prudent, with room for a meaningful recovery, the firm noted.
Analysts think Express is in a better position since it kicked off 2015 with spring inventory tracking as a larger composition to total over last year, the firm added.
"We believe CEO David Kornberg has the strength, energy, and experience to deliver more profitable, predictable and sustainable growth ahead," BMO said, adding that Express's third quarter for 2015 product testing shows early strength, with readings and reorders on key items encouraging.
Separately, TheStreet Ratings team rates EXPRESS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPRESS INC (EXPR) 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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
You can view the full analysis from the report here: EXPR Ratings Report