FRAN Stock – Francesca’s Shares Slide on Analyst Downgrade

by Karl Utermohlen | January 29, 2014 2:11 pm

FRAN Stock – Francesca’s Shares Slide on Analyst Downgrade

Francesca’s Holdings (FRAN[1]) was downgraded today as FRAN stock fell over 5% in early afternoon trading Wednesday.

Francesca185 FRAN Stock   Francescas Shares Slide on Analyst Downgrade[2]Goldman Sachs (GS[3]) downgraded[4] 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[5] from Janney Capital back in November.

Endnotes:
  1. FRAN: http://studio-5.financialcontent.com/investplace/quote?Symbol=FRAN
  2. [Image]: http://investorplace.com/wp-content/uploads/2012/12/Francesca185.jpg
  3. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  4. downgraded: http://www.streetinsider.com/Analyst+Comments/Goldman+Sachs+Downgrades+Francescas+Holdings+%28FRAN%29+to+Sell%3B+Analyst+Sees+Structural+Challenges/9098667.html
  5. received a downgrade: http://99wallstreet.com/new/ratings/stock/FRAN/

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