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J.Jill: Improved Outlook and Margin Recovery Ambitions Create Compelling Long-Term Buy Opportunity Despite Execution Risks

J.Jill: Improved Outlook and Margin Recovery Ambitions Create Compelling Long-Term Buy Opportunity Despite Execution Risks

William Blair analyst Dylan Carden has maintained their bullish stance on JILL stock, giving a Buy rating yesterday.

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Dylan Carden has given his Buy rating due to a combination of factors related to J.Jill’s improved outlook and attractive valuation. The company modestly lifted its fourth-quarter and full-year EBITDA guidance following stronger-than-expected holiday performance, even after absorbing additional tariff-related costs. While near-term sales trends still show a slowdown, management’s efforts to stabilize revenue and ultimately restore historically strong margins underpin a favorable risk-reward profile.

Dylan Carden’s rating is also based on the stock’s compelling long-term valuation and cash generation potential. Shares trade at a low multiple of projected 2026 earnings and already offer a high free-cash-flow yield, which could rise further if modest same-store sales growth and margin recovery materialize into 2027. He acknowledges that execution risk is elevated, given J.Jill’s past volatility and dependence on the success of upcoming merchandise refreshes, but views the current price as discounting much of that uncertainty. In his view, the combination of improving guidance, margin recovery ambitions, and discounted valuation supports a Buy recommendation despite the execution risks into 2026.

In another report released yesterday, TipRanks – Google also upgraded the stock to a Buy with a $17.00 price target.

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