Zale stock receives a buy rating

Salomon Smith Barney said analyst Carolyn Morse Gretta started coverage of U.S. jewelry retailer Zale Corp. on Tuesday with a buy rating, Reuters reported.

In a report, the analyst set a 12-month price target of $50, Reuters reported.

”Superior merchandising, industry consolidation, new channels and concepts and favorable demographics should boost current total domestic market share of 4%,” Gretta said in the analyst report. “We forecast long-term EPS (earnings-per-share) growth of 18%, primarily due to operating efficiencies from economies of scale, corporate initiatives and recent acquisitions.”