Wedbush Cuts Price Target on Francesca's (FRAN) Following 1Q15 Results

Wedbush maintains a Neutral rating on Francesca's Holdings (NASDAQ: FRAN), and cut the price target to $14.00 (from $17.00), following 1Q15 results. FRAN reported EPS of $0.17, compared to $0.18 consensus. Management guided 2Q15 EPS to $0.20-$0.23, below consensus $0.27.

Analyst Morry Brown commented, "Since Michael Barnes took the reins at FRAN in December 2014, shares have maintained an embedded turnaround premium, given a favorable view of Barnes' prior track record. With 2Q results now guided down, the market appears to have grown impatient with the pace of the company's turnaround efforts. From here, we believe FRAN will need to turn its apparel business by 3Q in order to meet implied 2H EPS guidance and avoid a cut to FY guidance. Despite the company's optimistic tone on 2H, we are hesitant to build in a meaningful acceleration in comp trends, as we do not have a clearly defined catalyst to point to. We thus remain NEUTRAL until we gain comfort the apparel business can return to positive comps."

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 $13.81 yesterday.

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