UPDATE: JP Morgan Maintains Neutral, Lowers PT to $22 on Francesca's Holdings

JP Morgan reiterates its Neutral rating on Francesca's Holdings Corp.

and lowers its target to $22 from $24, as clarity on clearance should help dissipate current fog on shares. JPM comments, “Markdown health rebuffs recent doubt. This past week has seen a marked sell-off in FRAN shares as concerns circulated around the Street that a deeper than expected promotional cadence at FRAN stores would weigh heavily on margins. However, management stressed that, unsurprisingly, a degree of clearance is a normal part of the business and 3Q11 merchandise margins actually increased and the company stressed that they are comfortable with 4Q11 progress.” FRAN closed at $17.56 per share on Tuesday.