S&P Capital IQ Reiterates its HOLD Rating on Liz Claiborne, Target Price Raised

October 13 00:00 2011

NEW YORK, October 13 (RainbowNewsLine.com) – Analyst Jason Asaeda of S&P Equity Research maintains his HOLD rating on the shares of Liz Claiborne (NYSE: LIZ). The target price has been raised from $6.50 to $7.50.

Analyst Jason Asaeda, in a research note published yesterday, mentions that LIZ has declared liquidating its partnered brands through a series of transactions expected to be realized by the end of 2011. Liz Claiborne family of brands will be sold to JC.Penny (NYSE:JCP) and cash proceeds of $328 million will be used by LIZ to repay its debt. The company was aiming a net year-end debt of $270-$290 million, which is well below Q2’s $742 million. The analyst views strength in the company’s financial statements and believes the focus on lifestyle brand will improve LIZ’s competitive ranking in 2012.