Mizuho Securities Maintains Neutral on Francesca's (FRAN) Ahead of 2Q15 Results

Mizuho Securities maintained a Neutral rating and $15.00 price target on Francesca's Holdings (NASDAQ: FRAN) ahead of the company's 2Q15 results. Analyst Betty Chen believes that at the least, an in-line 2Q result and forward outlook is priced into the shares. FRAN is scheduled to report 2Q15 results on September 9th.

Chen commented, "With FRAN up ~20% since 8/24/15 (partly on short covering), we believe that at the least, an in-line 2Q result and forward outlook is priced into the shares. With the announced departure of Chief Merchant Alt on 8/18/15, we believe investors have tempered expectations for a meaningful revival in the apparel category for 2H (~50% of sales) though hopes remain for a dramatic change in real estate strategy going forward. Given the lack of visibility toward meaningful nearterm improvement and recent management changes, we view current valuation of ~12x FY16 P/E as fair."

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 $12.81 yesterday.

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