Nomura Securities Maintains a 'Neutral' on rue21, inc. (RUE); 3Q Review

Nomura Securities maintains a 'Neutral' on rue21, inc. (NASDAQ: RUE) price target of $30.00.

Nomura analyst, Paul Lejuez, said, "Overall 3Q was in line with expectations as is 4Q guidance. However, RUE posted flat comps for the second consecutive quarter and expects the same in 4Q. While not a bad result especially given the solid gross margin performance, the growth story would be more compelling with a little more comp sizzle. We are revising our F11E EPS from $1.51 to $1.54 based on better-than-expected 3Q EPS. Although 4Q is off to a decent start, much of the holiday season is yet to come and there is risk that the company will need to become more promotional than planned to drive traffic."

For an analyst ratings summary and ratings history on rue21, inc. click here. For more ratings news on rue21, inc. click here.

Shares of rue21, inc. closed at $24.04 yesterday.

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