UPDATE: Wunderlich Securities Reiterates Hold Rating, Lowers PT on Ruby Tuesday Ahead of Earnings Report

In a report published Tuesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Hold rating on

, but lowered the price target from $6.50 to $6.00. In the report, Wunderlich Securities noted, “Cautiously, we are trimming our Q3F14 (Feb) and Q4F14 (May) SSS in advance of Ruby Tuesday's (RT) scheduled earnings report this Wednesday AMC. Given inclement weather in Ruby's key geographic markets during Q3, we are lowering our co-SSS to -6.8% from -5.0%, and our Q3 EPS to ($0.10) from ($0.09), with SSS deleverage offset somewhat by cost-saving programs. And, given sustained competition, we are trimming Q4 SSS to -2.8% (vs. guidance ‘down-low singles to flat'), though cost saving programs are projected to improve EPS to $0.05 from $0.03. Including previous Q2F14 reported results, FY14 (May) EPS is revised to ($0.84) from ($0.92). While both SSS and EPS are projected to improve in FY2015, given Ruby's still fragile business model, we are lowering our PT to $6.00 from $6.50.” Ruby Tuesday closed on Monday at $5.60.