J.Jill initiated with a Buy at Lake Street

Lake Street initiated coverage of J.Jill with a Buy rating and $38 price target. Calling J.Jill a “hidden gem in the retail space,” the analyst argues that a large part of the J.Jill value proposition is its ability to generate consistent cash flows. Despite its “industry-leading” margins and strong cash generation, J.Jill trades at a discount to the peer group median and the firm believes this valuation gap can begin to close as “the company gets on the radar screen of more investors.”