- Telsey Advisory Group analyst Christina Fernandez maintained a Market Perform rating on the shares of Joann Inc JOAN with a price target of $8.00.
- Joann’s Q2 adjusted EPS loss missed Street estimates with a 6.2% decline in comparable store sales.
- The analyst said the company saw sequential improvement in its comparable sales as the quarter progressed.
- However, Fernandez felt the supply chain costs remain elevated and are expected to weigh on the gross margin for at least another quarter.
- The analyst believes for the stock to regain momentum, she needs to see a return to positive comparable store sales, easing of supply chain costs, and further debt reduction.
- The analyst also noted Joann’s appointment of Scott Sekella as its new CFO, effective September 26.
- Price Action: JOAN shares are trading lower by 1.82% at $7.01 on the last check Friday.
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