MTR puts buy recommendation on Elizabeth Arden notes

New York, July 24 - Miller Tabak Roberts Securities LLC is recommending investors buy Elizabeth Arden, Inc.'s 10.375% senior notes of 2007 and 11.75% senior secured notes of 2011.

The cosmetics company should show a turnaround from its "noticeably lackluster performance" in fiscal 2002, according to Robert Goch, a senior vice president in MTR's research department.

"While Arden's past year results can be attributed to a general sales and earnings malaise for mall-based retailers and their suppliers, Arden's focus on cost savings initiatives, the recent implementation of new, 'open sell' marketing strategies and the introduction of two additional fragrance lines should provide a considerable lift to the company's bottom line performance and noticeably improved credit metrics for fiscal 2003, Goch said.

He described Elizabeth Arden's senior notes as a "compelling investment opportunity" at their current levels.

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