UPDATE: Jefferies & Company Upgrades rue21 to Buy, Raises PT

In a report published Monday, Jefferies & Company upgraded its rating on rue21

from Hold to Buy, and raised its price target from $32.00 to $40.00. Jefferies noted, “We are upgrading shares of RUE as we believe in the LT growth model, we like the visibility and predictability of the revenue and earnings streams and we think the management team is stellar. We view current valuation as very compelling for a growth company and like that Street sentiment is fairly neutral. We are upgrading to a Buy rating with a $40 PT.” rue21 closed on Friday at $26.88.