Wednesday, November 22, 2006

Deutsche Bank Says $6B in Sears Holdings (SHLD) Value Could Be Unlocked

Sears Holdings Corporation (Nasdaq: SHLD) is higher this morning following a positive research report from Deutsche Bank examining the additional cash that could be generated by securitizing real estate and intellectual property assets.

Analyst William A Dreher said, "We believe there is potentially up to $6.0B in total value that could be unlocked. By leveraging chairman Eddie Lampert’s expertise in investing these proceeds, we see an additional $0.91-$7.88 to our core FY07 EPS estimate (retail only). By adding the incremental per share value to our current PT of $206, we arrive at an implied share price range of $220-$381. Reiterate BUY rating."

Shares of Sears Holdings are 3% higher to $177.50 in early action



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