Wells Fargo Starts rue21, inc. (RUE) at Market Perform

Wells Fargo initiated coverage on rue21, inc. (NASDAQ: RUE) with a Market Perform rating and a price target of $30-$32.

Analysts said, "We like that RUE targets underserved markets, we have difficulty grasping its growth targets, but we are also concerned that comps and margins have been only flat to up slightly, making drivers of earnings growth less visible. However, the stock currently trades at 17x our FY2013E EPS (in line with the group) and 6.0x our FY2013E EBITDA (below the group), so we believe that the risk/reward is balanced."

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 $33.31 yesterday.

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