P/E of 21.5 and a PEG of 0.79.

Outperform - Price 37.38 on Nov. 6
by Morgan Keegan
Shares of Warnaco [which owns and licenses clothing brands, including Calvin Klein sportswear, Speedo swimwear and Warner's intimate apparel] are currently trading at 17.5 times our FY07 EPS estimate of $2.14, 7.3 times our FY07 earnings before interest, taxes, depreciation and amortization [Ebitda] estimate, and at an 8.3% [free-cash-flow] yield. Based on FY08, shares trade at 14.7 times our EPS estimate of $2.55 and at 6.6 times our Ebitda estimate, and have a 9.3% FCF yield.

Warnaco Group (WRNC) was upgraded by JP Morgan from Neutral to Overweight.

For the retro style of Ccean Pacific.

The Warnaco Group, Inc. (Warnaco Group) designs, sources, manufactures, markets, licenses and distributes a line of intimate apparel, sportswear and swimwear worldwide. Warner's, Olga, Calvin Klein, Speedo, Chaps, Nautica, Catalina, Anne Cole and Lejaby. s of December 30, 2006, the Company operated 643 Calvin Klein retail stores worldwide (consisting of 106 free-standing stores and 537 shop-in-shop/concession stores); 79 Lejaby retail stores (consisting of two free-standing stores and 77 shop-in-shop stores), and one Speedo online store. As of December 30, 2006, there were also 147 Calvin Klein retail stores operated by third parties under retail licenses or distributor agreements. The Company operates in three business groups: Sportswear Group, Intimate Apparel Group and Swimwear Group.

A Director of the company has recently purchased 25,000 shares or $673,376 worth of stock.

Upgraded by Morgan Keegan from Mkt Perform to Outperform