Wedbush Cuts Price Target on Francesca's (FRAN) Following 1Q and Guidance

Wedbush maintained a Neutral rating on Francesca's Holdings (NASDAQ: FRAN), and cut the price target to $10.00 (from $12.00) following the company's 1Q earnings report. Interim CEO, Richard Kunes, emphasized his prior involvement and commitment to Vision 2020 and the new leadership team. 2Q EPS was guided to $0.16-$0.19 on SSS down MSD versus consensus expectations for EPS of $0.23 on SSS up LSD. FY16 EPS guidance was lowered to $0.86-$0.96 from $0.93-$1.03.

Analyst Morry Brown commented, "We see risk to 2H improvement embedded in FY guidance. With a comp slowdown now guided for 2Q, we see risk to the improvement assumed within the 2H comp guidance. On the positive side, we are encouraged by the company’s commitment to Vision 2020 and the clear strategic path to improved merchandising. But the magnitude of the slowdown in 2Q leaves us less optimistic about comps accelerating in 2H as comparisons strengthen materially."

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 $10.63 yesterday.

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