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Analysts Conflicted on These Services Names: Francesca’s (FRAN) and Peak Resorts (SKIS)


Companies in the Services sector have received a lot of coverage today as analysts weigh in on Francesca’s (NASDAQ:FRAN) and Peak Resorts (NASDAQ:SKIS).

Francesca’s (FRAN)

Francesca’s received a Hold rating and a $4 price target from B.Riley FBR analyst Susan Anderson yesterday. The company’s shares opened today at $3.85, close to its 52-week low of $3.64.

Anderson observed:

“We are downgrading FRAN to Neutral from Buy given the significantly lowered 2018 EPS guidance, as it is taking management longer than expected to turn sales/margins around. FRAN reported 2Q18 EPS of $0.01, a miss against B. Riley FBR/consensus estimates of $0.07/$0.05. Management revised 2018 EPS guidance significantly lower to $0.15–$0.25 vs prior guidance of $0.53–0.63, $0.52 LY , and B. on SSS of (10%)–(8%) vs. prior guidance for –LSD. FRAN provided 3Q EPS guidance significantly below the $0.02 vs. B. on SSS of (8%)–(3%). On a two year stack basis, this would imply no improvement in SSS for the remainder of the year, and a deterioration in 3Q from 2Q.”

According to TipRanks.com, Anderson is a 4-star analyst with an average return of 6.9% and a 54.5% success rate. Anderson covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Abercrombie Fitch.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Francesca’s with a $9 average price target.

See today’s analyst top recommended stocks >>

Peak Resorts (SKIS)

B.Riley FBR analyst Barton Crockett maintained a Buy rating on Peak Resorts yesterday and set a price target of $6. The company’s shares opened today at $5.

Crockett wrote:

“Peak’s F1Q19 earnings report was for the off-season three months ending July 31. EBITDA declined y/y because of rising wages, and a series of major capital projects expected to boost results in the upcoming ski season. Revenues were also depressed by a move announced last quarter to exit an EBITDA-neutral hotel management contract at Attitash.”

According to TipRanks.com, Crockett is a 4-star analyst with an average return of 5.2% and a 56.5% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Lions Gate Ent Corp Cl A, and Qurate Retail Group Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Peak Resorts with a $6.50 average price target, a 30.0% upside from current levels. In a report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $7 price target.

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