Bernstein SocGen Group Reiterates Outperform Rating on Chico's, Inc. (CHS)

Bernstein SocGen Group analyst Pujarini Ghosh reiterated an Outperform rating and $130.00 price target on Chico's, Inc. (NYSE: CHS).

The analyst commented: "Targets better than expectations, but achievable remain encouraged about stock outperformance potential; CRH hosted their CMD yesterday, providing the first strategic update since Sep'23. They provided growth, margin and FCF conversion guidance until 2030 and also discussed different growth drivers and initiatives.

Growth: CRH guided to 7-9% revenue CAGR for 2026-30, and the CEO highlighted that this will be evenly split between organic and inorganic growth. We are forecasting 7.3% p.a. over 2026-28 (see Exhibit 1), i.e. at the lower end of the guidance. This is also above our recently conducted poll results Link, where majority investors expected 5-8% CAGR (see Exhibit 3). Of our 7.3% CAGR, we expect ~5% to come from organic growth while we have baked in ~2% of inorganic growth. Given the capital allocation targets, we believe, CRH is targeting significantly higher inorganic growth vs our and consensus expectations.

CRH’s investor day presented a mid-term outlook through 2030 with targets that exceed both consensus and our own estimates, as their guidance incorporates greater expectations for inorganic growth. Despite the stock's rally today (and recently), we maintain a positive stance on the company, believing that CRH’s attractive portfolio and pricing power will enable the company to capitalize on mega-trends while also providing resilience in challenging market conditions."

For an analyst ratings summary and ratings history on Chico's, Inc. click here. For more ratings news on Chico's, Inc. click here.

Shares of Chico's, Inc. closed at $7.59 yesterday.

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