UPDATE: Wedbush Initiates Coverage on Francesca's Holdings, Up 5 Percent

In Thursday morning's reports, Wedbush analyst Morry Brown announces coverage initiation on Francesca's Holdings FRAN with a rating of Outperform and price target of $25.

Brown based the rating on an increase in trend for feminine fashion for spring approaches, FRAN cycling as a public company and lapping an easy comparison, and an improve consumer spending environment.

Wedbush is not buying the projected margin spiral, noting, "We believe FRAN’s 2013 challenges were driven simply by poor sales performance based on macro and fashion challenges, and are not reflective of the beginnings of a permanently impaired margin structure."

FRAN closed the previous trading session at $18.96 and opened up Thursday at $19.26. At the time this article was written, FRAN traded at the $19.98 mark, soaring over 5% from the previous close.