UPDATE: Jefferies Upgrades Francesca's Holdings to Buy

Jefferies published a report on Francesca's Holdings

and upgraded the company from Hold to Buy with a raised price target, from $35 to $38. In the report, Jefferies wrote, "A quarter ago we downgraded FRAN as valuation was high and we were surprised by the recent management change. However, since then valuation has become much more attractive, our confidence in the long term has not waned and we now feel comfortable with new leadership taking the baton. Based on performance of the retail sector and our view that FRAN's momentum continued into 3Q, we feel good about 3Q results and think guidance was likely conservative when given on 9/4. The set up is also favorable given very negative sentiment. While it is not our intention to make a direct call on the quarter, as rather we view this as a nice entry point on a LT growth name, we do expect a solid 3Q." Francesca's Holdings closed at $25.30 on Monday.