Craig-Hallum more bullish on Citi Trends, upgrades to Buy

As previously reported, Craig-Hallum analyst Jeremy Hamblin upgraded Citi Trends (CTRN) to Buy from Hold with a $36 price target following strong Q4 holiday sales and meeting with management. The firm highlights the strategy change brought by the new CEO, Ken Seipel, focusing on more branded products in stores, particularly in Footwear and Men’s, which is being acquired via closeout deals. The company is assessing vendor relationships that are driving more traffic, particularly in the categories where Citi Trends have lagged in the past few years. Further, Craig-Hallum notes a strong balance sheet as limiting downside with a bull case that could see the stock climb well over $50.