There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on PRGX Global (PRGX) and Chico’s FAS (CHS) with bullish sentiments.
PRGX Global (PRGX)
B.Riley FBR analyst Zach Cummins reiterated a Buy rating on PRGX Global today and set a price target of $12. The company’s shares closed yesterday at $6.62.
Cummins commented:
“Buy-rated PRGX Global (PRGX) reports 2Q19 results after the market closes on Tuesday, July 30. The company’s earnings call will follow at 5:00pm ET (Dial-in: ID# 3629918). We expect results will meet Street estimates, which are consistent with our model. For 2Q, we assume mid-single digit Y/Y revenue growth in RAS – Americas (“Americas”) and high- single digit growth in RAS-Europe/Asia Pacific (EAP). Rounding out our assumptions is mid- teens Y/Y growth in Adjacent Services, which largely reflects the increasing contribution from the company’s recurring revenue engagements. We anticipate higher Y/Y gross margin due to increasing leverage in the core recovery audit segment.”
According to TipRanks.com, Cummins has 0 stars on 0-5 star ranking scale with an average return of -10.5% and a 36.7% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, American Software, and ChannelAdvisor.
PRGX Global has an analyst consensus of Moderate Buy, with a price target consensus of $12.50.
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Chico’s FAS (CHS)
In a report released today, Susan Anderson from B.Riley FBR reiterated a Buy rating on Chico’s FAS, with a price target of $5. The company’s shares closed yesterday at $3.27, close to its 52-week low of $2.98.
Anderson said:
“We attended the CHS fall/holiday preview event in 7/24, where we had the opportunity to see upcoming launches and fashion trends for the fall/holiday seasons, as well as speak with VP of IR Julie Lorigan. We were impressed with the quick changes that CHS has been able to implement for the fall/holiday collections of Chico’s and WHBM, getting back to a more balanced assortment between basics/fashion and more sophisticated looks that customers expect. On the intimates side, Soma has a wide-variety of new products and innovations planned for fall/holiday that should drive continued strength in that business. Lastly, we got an in-person look at products from the recently launched, digital-first TellTale brand, which management indicated was off to a solid start.”
According to TipRanks.com, Anderson is a 2-star analyst with an average return of 0.3% and a 41.1% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Callaway Golf.
The word on The Street in general, suggests a Hold analyst consensus rating for Chico’s FAS with a $4.10 average price target.
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