Chico's FAS Acquisition: Why Sycamore's Strong Track Record And Sourcing Capabilities Make It The Ideal Suitor, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Chico's FAS Inc (NYSE:CHS) has agreed to be acquired by private equity firm Sycamore Partners for approximately $1 billion. Telsey Advisory Group analyst Dana Telsey has reiterated a Market Perform rating on CHS shares and raised the price target from $6.00 to $7.60. The analyst views Sycamore as a natural suitor for Chico's due to its track record in the apparel sector and its ownership of MGF Sourcing, a global sourcing and supply chain company. The acquisition is seen as likely to be completed on schedule and at a fair price.
September 29, 2023 | 5:55 pm
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Chico's FAS is being acquired by Sycamore Partners, a move seen as positive by analysts. The acquisition price is seen as fair and the transaction is expected to be completed on time.
The acquisition of Chico's FAS by Sycamore Partners is seen as a positive move by analysts, who have reiterated a Market Perform rating on CHS shares and raised the price target. This suggests confidence in the transaction and could potentially boost the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100