UPDATE: Wedbush Reduces PT to $4.75 on Bebe Stores Post Q1 Comp Miss

Wedbush reiterated its Neutral rating on Bebe Stores

and reduced its price target from $5.50 to $4.75. Wedbush commented, "Similar to our expectations, BEBE reported a Q1 comp of (8.7)%, in line with our below-consensus (6-8)% estimate and missed expectation of (5.3)%. We highlight the same-store sales miss represents a significant slowdown from the 2- year run-rate we witnessed in Q4, which may have stemmed from sluggish traffic. In addition to intensified competition, particularly from fast fashion retailers and other highly promotional softline peers, we highlight stale and ineffective promotional cadence may have also contributed to the retailer's lackluster performance." Bebe Stores closed at $6.47 on Tuesday.