Cowen Cuts Price Target on Francesca's (FRAN) Following Investor Meeting

Cowen maintained an Outperform rating on Francesca's Holdings (NASDAQ: FRAN), and cut the price target to $16.00 (from $18.00), following an investors meeting. Management is planning 50-60 new boutiques in FY16, a step down from an expected 83 new locations in FY15. Additionally, there will be ~10 store closings NTM, the first in FRAN's history.

Analyst John Kernan commented, "Last week we met with investors in Boston along with FRAN CEO Mike Barnes and CFO Mark Vendetti. We came away with more clarity on management's strategic rationale to achieve positive same-store sales while recapturing margin. Ultimately, execution will decide but we think downside is limited from here. Maintain Outperform, lowering PT to $16, reflecting 17x our FY16E EPS or 8x EV/EBITDA."

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 $12.27 yesterday.

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