UPDATE: Wedbush Securities Reiterates Outperform Rating, Raises PT on Francesca's Holdings

In a report published Wednesday, Wedbush Securities reiterated its Outperform rating on Francesca's Holdings Corp. FRAN, and raised its price target from $36.00 to $40.00. Wedbush Securities noted, “With an impressive Q2 beat, BTE Q3 guidance and raised F12 outlook above consensus, we believe any pullback related to the CEO change provides a buying opportunity. In fact, we view the appointment of Neill Davis as the CEO, a long-term retail veteran (and Board member since 2007) as an overall positive and believe his experience in shepherding the growth of MW as highly applicable to FRAN's current growth trajectory. With strong checks QTD according to our Retail Specialists, we believe solid full-priced selling continues to be driven by FRAN's well-differentiated, broad and shallow assortment coupled with healthy sell-throughs in the higher-margin accessories categories. We again note broad-based strength across all regions and store types witnessed in Q2 has continued into Q3 and growing brand awareness continues to aid overall transactions while expansion of DTC (only 2% of sales) and the rollout of an outlet store this summer provides additional legs of growth. Moreover, we believe the imminent appointment of a new CFO could provide another positive catalyst.” Francesca's Holdings Corp. closed on Tuesday at $36.07.