Mizuho Securities Raises Price Target on Francesca's (FRAN) Following 3Q Beat

Mizuho Securities reiterated a Neutral rating on Francesca's Holdings (NASDAQ: FRAN), and raised the price target to $18.00 (from $15.00), following the company's 3Q earnings report and guidance. EPS of $0.26 was above the Street’s $0.18 estimate. Comps of +7% compare to +4% LY. In 3Q, benefiting from +MSD gain in transactions and +LSD growth in average transaction value.

Analyst Betty Chen commented, "As expected, FRAN reported a 3Q beat and offered in-line 4Q guidance, leading us to raise our PT to $18 from $15 prior. We are impressed with new CEO Lawrence’s outlined focus on real estate, eCommerce, inventory management and customer engagement, which we believe should propel the progress underway. With shares now trading consistent with the group average and pricing in much of the return to +MTeens operating margin in the next 5 years, we would prefer to maintain our Neutral stance."

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 $15.54 yesterday.

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