UPDATE: DA Davidson Raises Target to $9 on Ruth's Hospitality Group

DA Davidson raises its price target to $9, up 50 cents, on Buy-rated Ruth's Hospitality Group

, as the retiring of the company's preferred stock is seen as confidence-boosting and highly accretive to shares. DA Davidson says, "RUTH repurchased the 10% convertible preferred stock owned by Bruckman, Rosser, Sherrill & Co. L.L.C. for $60.2 million ($7 per share) and will retire the 8.6 million shares. The purchase is being funded with the senior credit facility. This transaction eliminates the preferred dividend and the share count will decrease by 20%." RUTH closed at $6.71 a share on Friday.