Janney Montgomery Scott maintains a 'Buy' on Francesca's (FRAN); Vote of Confidence from CEO Share Buy

Janney Montgomery Scott maintains a 'Buy' on Francesca's Holdings (NASDAQ: FRAN) price target of $41.00.

Analyst, Adrienne Tennant, said, "We continue to believe FRAN is one of the most attractive longer-term, small cap growth stories in the space. With the stock now trading at 23.4x our FY13 earnings, we believe the recent, dramatic selloff presents an opportune entry point for both new and existing stockholders. We believe the valuation for a 20%+ earnings growth stock is highly attractive. When we see a significant stock selloff, we try to differentiate between 1) a longer-term, fundamental issue and 2) a short-lived, non-fundamental issue that can be resolved with the passage of time. In this case, the reason for the selloff - CEO John De Meritt's retirement - is both short-lived and resolvable over time. As a result, we urge accumulation on the back of the recent weakness resulting from the announcement of the management transition. We believe the vote of confidence from the soon-to-be CEO."

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 $27.87 yesterday.

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