Francesca’s Holdings: We See Limited Downside From These Levels, Says William Blair

In a research note released today, William Blair analyst Amy Noblin maintained an Outperform rating on shares of Francesca’s Holdings Corporation (FRAN) following meetings with CFO Mark Vendetti.

Noblin noted, “While comp and margin performance have been disappointing, we do not believe the model is broken and ascribe much of francesca’s recent challenges to factors more outside the company’s control, including weather, less dominant fashion trends, and meaningful category shifts. With easier comparisons, more-balanced assortments, a commitment to moreconservative inventory plans, andstill-solid new store performance, we anticipate the potential for an inflection in the second half of the year”.

The analyst continued: “With the stock trading at 13 times our 2014 EPS estimate (5% growth) and 12 times our 2015 EPS estimate (14% growth), and given private equity interest in the space, we see limited downside from these levels”.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Amy Noblin currently has a one-year average return of -24% and a 0% success rate. He is ranked #2922 out of 3135 analysts.

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