J Crew initiated with "neutral"

11/20/07 - Nollenberger Capital

NEW YORK, November 20 (newratings.com) - Analyst Ann Poole of Nollenberger Capital Partners initiates coverage of J Crew Group Inc (JCG) with a "neutral" rating.

In a research note published this morning, the analyst mentions that a strong management team and defined niche make J Crew one of the most well positioned companies in the retail segment. The analyst adds, however, that the current valuation of J Crew's stock fully reflects the company’s strengths and growth prospects. The company is expected to post its 3Q07 EPS at $0.35, Nollenberger Capital Partners says. Although the company has a high debt level, its robust cash flows should enable it to repay the debt ahead of the schedule, the analyst adds.