Janney Capital Remains Positive on bebe stores (BEBE) Despite Negative Reactions to Announcements

Janney Capital maintains a Buy rating and $5.00 price target om bebe stores, inc. (NASDAQ: BEBE) despite negative reactions to announcements. Analyst Adrienne Yih believes that the chairman/founder's announced exit plan, and cessation of dividend will actually have a positive implication long-term.

Yih commented, "Since BEBE’s call on 5/7/15, the stock has reacted negatively to two non-fundamental announcements: 1) cessation of the dividend & 2) Chairman/founder’s exit plans from his 59% majority ownership position. Both of these are issues that do not impact the pace of the turnaround in play. We believe each actually has positive implications l/t, but n/t, investor reaction is to sell. The dividend preserves cash and does not pay out the majority to the Chairman, and his exit would put bebe’s majority ownership in the hands of institutional investors."

For an analyst ratings summary and ratings history on bebe stores, inc. click here. For more ratings news on bebe stores, inc. click here.

Shares of bebe stores, inc. closed at $2.40 yesterday.

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