Citi Trends price target raised to $28 from $20 at DA Davidson

DA Davidson analyst Michael Baker raised the firm’s price target on Citi Trends (CTRN) to $28 from $20 and keeps a Buy rating on the shares after its Q3 results. The company was also added to the firm’s “Stampede” list, with the firm seeing the stock as a “turnaround story” that is being driven by new management and specifically a new CEO, the analyst tells investors in a research note. Given the improving trends, DA Davidson sees a path back to mid-single digit EBITDA margins in the coming years for Citi Trends, supported by improved merchandising and operations and potentially accelerating store growth.