Wedbush Upgrades Francesca's Holdings (FRAN) to Outperform

Wedbush upgraded Francesca's Holdings (NASDAQ: FRAN) from Neutral to Outperform with a price target of $14.00, citing merchandising improvements and easy comparisons to drive improving 2H trends.

Analyst Morry Brwon commented, "We upgrade FRAN to OUTPERFORM from NEUTRAL based primarily on improving channel checks QTD. The fall apparel offering appears significantly better YOY and we believe should drive sequentially improved 2H trends across both sales and margins. Sentiment has turned negative on the company recently, as shares have declined 29% since June 9, far below the 6% decline in the S&P 500. We believe the decline reflects a bearish view into 2Q EPS. We acknowledge some earnings risk to the quarter, and lower our estimate to a penny below consensus for 2Q. That said, we believe a miss is already discounted in current shares and the focus will be on QTD trends, which we believe have improved."

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 $11.39 yesterday.

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