UPDATE: Wunderlich Initiates Coverage on Ruby Tuesday on Uncertain Path Ahead

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington initiated coverage on Ruby Tuesday RT with a Hold rating and $8.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Ruby Tuesday, Inc. (RT) with a Hold rating and $8 target. While we are hopeful that management's efforts to re-engage its core RT guests can prove fruitful and sustaining, we are adopting a more cautious initial stance with our projections and rating given intense competition, the current weak consumer spending environment, and Ruby's track record of struggles in recent years. However, as CEO James (J.J.) Buettgen and his strengthened management team have acted swiftly to purge peripheral brands, close weak stores, and strengthen its sales and operating systems, Ruby's could be poised for improved operating trends to come. Despite that, pending sustained improved operating results, we are initiating coverage of RT with a Hold rating.” Ruby Tuesday closed on Thursday at $7.50.