UPDATE: Piper Jaffray Downgrades rue21 on Announced Take-Out
In a report published on Thursday, Piper Jaffray analyst Stephanie S. Wissink Downgraded rue21 (NASDAQ: RUE) from Overweight to Neutral and raised the price target on the company from $36 to $42.
In the report, Piper Jaffray noted, "We are moving to a customary Neutral rating on RUE shares as the announced take- out at $42/share by private equity firm Apax Partners places shares at fair market value. We think the business model, with relative comp stability, favorable unit economics, and strong cash generation, makes for an opportunistic PE holding."
rue21 closed Wednesday at $34.12.
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