Talbots: The Street Underestimates Turnaround

Our Boston presenter highlights Talbot's (TLB: NYSE) margin improvement initiatives under the new management team as the reason to be more confident about the company's prospects. TLB has seen a complete change at the top, which has resulted in refocusing of efforts on the company's core woman business. Strong financial backing on the part of Aeon, a majority shareholder, ensures TLB will have sufficient liquidity. The stock has just been upgraded, but the Street is still underestimating Talbots' recovery potential. TLB has been running, but there is more upside left, possibly 100%+ from the current $11 level.