Afr -///// Citi analysts have upgraded their recommendation for...

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Citi analysts have upgraded their recommendation for Specialty Fashion Groupfollowing the sales of Autograph, Katies, Millers and Rivers to Noni-B for $31 million.

The broker had previously given the company a "neutral" recommendation, upgrading it to a "buy" and increasing the target price from 48¢ to 75¢.

Citi says that the sale would be good for SFG as it retains ownership of its strongest brand, City Chic.

The broker values City Chic at $117 million and says that sales are growing at 5-10 per cent with the potential for the business to generate EBITDA of $19-20 million in FY18e.

City Chic has an expanding international business, primarily in the US and Citi says it expects continued expansion for the business's online sales and offshore distribution.