Goldman Raises Price Target on Francesca's Holdings (FRAN) Due to Stronger Comps
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Price: $29.55 -3.15%
Rating Summary:
14 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
14 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade FRAN Now!
Goldman Sachs is maintaining its Neutral rating rating on shares of Francesca's Holdings (NASDAQ: FRAN), while raising its price target from $21 to $23.
The company announced on January 10 that it was raising its Q4 EPS guidance range to $0.16-$0.17 as comps looked to be up 9-11 percent during the quarter, ahead of its previous forecast of $0.14-$0.15 on 4-5 percent increase in comps.
"The EPS raise also suggests FRAN drove these double-digit comp gains without pressuring gross margin," reports Goldman. "FRAN’s stable merchandise margin performance highlights the benefit of their shallow, short lead time strategy. This strategy allows it to react to strong trends quickly to drive sales, and at the same time mitigate inventory-driven merchandise margin risk."
Based on current sales trends and the company's performance, Goldman has raised its earnings estimates for fiscal 2011, 2012 and 2013 from $0.54, $0.73 and $0.92 to $0.56, $0.80 and $1.01.
For an analyst ratings summary and ratings history on Francesca\'s Holdings click here. For more ratings news on Francesca\'s Holdings click here.
Shares of Francesca\'s Holdings closed at $22.72 yesterday, with a 52 week range of $0.25-$29.75.
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The company announced on January 10 that it was raising its Q4 EPS guidance range to $0.16-$0.17 as comps looked to be up 9-11 percent during the quarter, ahead of its previous forecast of $0.14-$0.15 on 4-5 percent increase in comps.
"The EPS raise also suggests FRAN drove these double-digit comp gains without pressuring gross margin," reports Goldman. "FRAN’s stable merchandise margin performance highlights the benefit of their shallow, short lead time strategy. This strategy allows it to react to strong trends quickly to drive sales, and at the same time mitigate inventory-driven merchandise margin risk."
Based on current sales trends and the company's performance, Goldman has raised its earnings estimates for fiscal 2011, 2012 and 2013 from $0.54, $0.73 and $0.92 to $0.56, $0.80 and $1.01.
For an analyst ratings summary and ratings history on Francesca\'s Holdings click here. For more ratings news on Francesca\'s Holdings click here.
Shares of Francesca\'s Holdings closed at $22.72 yesterday, with a 52 week range of $0.25-$29.75.
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