J.Jill initiated with a Buy at Jefferies

Jefferies analyst Corey Tarlowe initiated coverage of J.Jill with a Buy rating and $44 price target. The analyst thinks the market underappreciates the company’s “sustainability and operational discipline to drive continued profitable growth.” J.Jill has generated high-teens EBITDA margins with regularity, translating to over $100M of EBITDA annually, the analyst tells investors in a research note. Driven by a loyal customer base, multi-channel distribution model, and sub-brand expansion, the firm sees an opportunity for higher numbers and multiple expansion.