Francesca’s Holdings (FRAN) was downgraded today as FRAN stock fell over 5% in early afternoon trading Wednesday.
Goldman Sachs (GS) downgraded the holding company from ‘Neutral’ to ‘Sell’ with a price target of $16.00 from $18.00. Analyst Lindsay Drucker Mann believes that Francesca’s will face structural challenges that could hurt FRAN stock in the fiscal year.
“Our chief concern is that FRAN’s multi-quarter stretch of deteriorating fundamentals is structural, rather than cyclical or execution driven,” says Mann. As a result, we expect only modest comp growth for the foreseeable future… We reduce FY14E/FY15E EPS to $1.18/1.40, with 5% downside risk to consensus.”
FRAN stock also received a downgrade from Janney Capital back in November.