Jefferies Cuts Price Target on rue21 (RUE) Following Flat Same-Store-Sales Growth
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Price: $41.99 --0%
Rating Summary:
1 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is maintaining its Hold rating on shares of rue21, inc. (NASDAQ: RUE) and is lowering its price target from $32 to $29.
The company released its second quarter earnings and sales results inline with expectations, but reported that same-store-sales for the quarter was flat.
The firm notes that flat same-store-sales for this quarter was not good as the company didn't have much of a competition from last years. A stalled top-line going into the second half of the year does not go well and remains the firms primary concern with RUE.
rue21 announced that it is forecasting EPS of $0.32-$0.34 in the third quarter and reaffirmed its 2012 EPS guidance of $1.50-$1.54. Jefferies highlights that this is encouraging and that it shows a sign of a healthy environment.
An analyst at Jefferies comments, "We like RUE’s growth potential, relevant business model and real estate strategy. However, given the increased uncertainty in the economic environment, we prefer to stay on the sidelines and await consistent topline momentum before getting involved."
Jefferies cut its 2012 EPS estimate from $1.54 to $1.52 and reiterated its 2013 EPS estimate of $1.78.
For more ratings news on rue21, inc. click here and for the rating history of rue21, inc. click here.
Shares of rue21, inc. closed at $26.97 yesterday.
The company released its second quarter earnings and sales results inline with expectations, but reported that same-store-sales for the quarter was flat.
The firm notes that flat same-store-sales for this quarter was not good as the company didn't have much of a competition from last years. A stalled top-line going into the second half of the year does not go well and remains the firms primary concern with RUE.
rue21 announced that it is forecasting EPS of $0.32-$0.34 in the third quarter and reaffirmed its 2012 EPS guidance of $1.50-$1.54. Jefferies highlights that this is encouraging and that it shows a sign of a healthy environment.
An analyst at Jefferies comments, "We like RUE’s growth potential, relevant business model and real estate strategy. However, given the increased uncertainty in the economic environment, we prefer to stay on the sidelines and await consistent topline momentum before getting involved."
Jefferies cut its 2012 EPS estimate from $1.54 to $1.52 and reiterated its 2013 EPS estimate of $1.78.
For more ratings news on rue21, inc. click here and for the rating history of rue21, inc. click here.
Shares of rue21, inc. closed at $26.97 yesterday.
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