Piper Jaffray: Current Fashion Cycle Favorable for rue21 Positioning
According to a research report released earlier today, Piper Jaffray says it is incrementally positive on shares of rue21 Inc. (NASDAQ: RUE) after attending the MAGIC trade show.
“With fashion trends centered around color, men's trends and accessories, we believe rue21's current product assortment and growth initiatives position the company well for increased momentum. With respect to the stock, we believe the risk/reward for RUE shares is compelling given it is the highest domestic sq footage growth story in our space with a solid mid/high-teens growth trajectory as the company grows from 755 to 1,500 doors over time,” Piper Jaffray stated in the report.
Piper Jaffray maintains its Overweight rating and $36 PT on rue21, which closed yesterday at $25.96.
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