FRAN Stock – Francesca’s Shares Slide on Analyst Downgrade

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

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

Francesca's Holdings (NASDAQ:FRAN)[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.

  1. FRAN:
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  3. GS:
  4. downgraded:
  5. received a downgrade:

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